United States General Accounting Office 


GAO 


June 2004 




Report to Congressional Addressees 


GOVERNMENT 
PRINTING OFFICE 

Actions to Strengthen 
and Sustain GPO’s 
Transformation 



GAO 




^.Accountability ♦ Integrity * Reliability 


GAO-04-830 







June 2004 


k G A O 

_ Accountability Integrity- Reliability 

Highlights 

Highlights of GAO-04-830, a report to the 
Chairmen and Ranking Minority Members, 
Committee on Appropriations, U.S. 
Senate, and Subcommittee on Legislative 
Branch, Committee on Appropriations, 
U.S. Senate 


Why GAO Did This Study 

The transformation of the 
Government Printing Office (GPO) 
is under way. This report captures 
the results of our efforts over the 
past year to assess and help 
strengthen GPO’s transformation 
and strategic planning efforts. It is 
the final part of GAO’s response to 
both a mandate requiring GAO to 
examine the current state of 
printing and dissemination of 
public government information and 
a congressional request that we 
conduct a general management 
review of GPO focusing on that 
GPO’s transformation and 
management. 


What GAO Recommends 


To further GPO’s transformation 
and build on the actions already 
taken by GPO's leaders, GAO is 
recommending that GPO leaders 
take steps to improve planning and 
goal setting for the transformation. 
GAO is also reconunending that 
GPO begin adopting leading 
practices of world-class 
organizations in financial 
management and information 
technology management. 

We provided a draft of this report 
in June 2004 to the Public Printer 
for review and conunent. The 
Public Printer agreed with our 
findings and recommendations and 
noted that this report will be a 
major part of GPO’s transformation 
process. 


www.gao.gov/cgi-bin/getrpt7GAO-04-830. 

To view the full product, including the scope 
and methodology, click on the link above. 
For more information, contact J. Christopher 
Mihm at (202) 512-6806 or mihmj@gao.gov. 


GOVERNMENT PRINTING OFFICE 


Actions to Strengthen and Sustain GPO's 
Transformation 


What GAO Found 



Federal government printing and dissemination are changing due to the 
underlying changes to the technological environment. The Public Printer and 
his leadership team understand the effects of this technological change on 
GPO and have begun an ambitious effort to transform GPO and reexamine 
its mission. Federal agencies are publishing more documents directly to the 
Web and are doing more of their printing and dissemination of information 
without using GPO services. At the same time, the public is obtaining 
government information from government Web sites such as GPO Access 
rather than purchasing paper copies. As a result, GPO has seen declines in 
its printing volumes, printing revenues, and document sales. To assist in the 
transformation process under way at GPO, GAO convened a panel of 
printing and information dissemination experts, who developed a series of 
options for GPO to consider in its strategic planning. The panel suggested 
that GPO 


• develop a business plan to focus its mission on information 
dissemination as its primary goal, rather than printing; 

• demonstrate to its customers the value it can provide; 

• improve and extend partnerships with agencies to help establish itself as 
an information disseminator; and 

• ensure that its internal operations are adequate for efficient and effective 
management of core business functions and for service to its customers. 

GPO can also use other key practices that GAO identified to help agencies 
successfully transform, such as involving employees to obtain their ideas 
and gain their ownership for the transformation. GPO fully applied one of 
these practices, related to ensuring that top management drives the 
transformation, and has partially implemented each of the remaining eight 
practices. To fully implement the remaining practices, GPO needs to take 
actions including establishing its mission and strategic goals and developing 
a documented plan for its transformation. 

GPO has taken some initial steps to adopt the best practices of other public 
and private sector organizations, most notably with respect to human capital 
management. GPO is actively implementing the recommendations GAO 
made in October 2003 (see GAO-04-85). For example, GPO reorganized the 
human capital office into customer-focused teams devoted to meeting the 
human capital needs of GPO’s operating units. Continued leadership 
attention is needed to build on the initial progress made in information 
technology and financial management. For example, GPO should implement 
an information technology investment management process to help 
management choose, monitor, and evaluate projects, and GPO should train 
its line managers to effectively use financial data. 


United States General Accounting Office 






















































































































Contents 


Letter 1 

Results in Brief 3 

Background 5 

Government Printing and Dissemination Changes Are Forcing GPO’s 

Transformation 10 

GPO Has Made the Case for Change, but Actions to Advance 

Transformation Needed 23 

World-Class Management Practices Can Strengthen GPO’s 

Transformation 47 

Concluding Observations 63 

Agency Comments and Our Evaluation 63 


Appendixes 

Appendix I: Scope and Methodology 66 

Appendix II: Comments from the Government Printing Office 69 

Appendix III: Executive Agency Satisfaction with GPO Services 71 

Level of Satisfaction with GPO Term Contracts 73 

Level of Satisfaction with GPO Procurement Purchasing 74 

Level of Satisfaction with GPO Regional Print Procurement 75 

Level of Satisfaction with GPO Information Dissemination 76 

Level of Satisfaction with GPO Customer Services 77 

Appendix IV: Panel of Experts 80 


Tables 


Table 1: Status of GPO’s Adoption of Key Practices Associated with 

Transformations 4 

Table 2: Printing, Binding, and Related Services Provided to the 

Congress and Federal Agencies for Fiscal Year 2003 6 


Table 3: 

Executive Agency Familiarity with GPO Services 

15 

Table 4: 

Executive Agency Level of Satisfaction with GPO 



Services 

16 

Table 5: 

Satisfaction with Products and Services 

72 

Table 6: 

Agency Print Officers’ Ratings of GPO Term Contracts 

74 

Table 7: 

Agency Print Officers’ Ratings of GPO Procurement 



Purchasing 

75 

Table 8: 

Agency Print Officers’ Ratings of GPO Regional 



Procurement 

76 

Table 9: 

Agency Print Officers’ Ratings of GPO Information 



Dissemination 

77 


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GAO-04-830 GPO Transformation 











Contents 


Table 10: Agency Ratings of GPO Customer Services 78 

Table 11: Agency Ratings of Most Recent Experience with GPO 

Customer Services 79 


Figures 


Figure 1: GPO Retained Earnings for Fiscal Years 1998-2003 
Figure 2: GPO Revolving Fund Activities Accumulated Losses to 
Retained Earnings for Fiscal Years 1999-2003 (Dollars in 
Millions) 

Figure 3: GPO Revenues and Expenses from Sales of Publications 
for Fiscal Years 1999-2003 
Figure 4: GPO’s Organization as of June 2004 
Figure 5: Banner Displayed at GPO’s Pueblo Document 
Distribution Center 

Figure 6: Achieving Best Practices in Financial Management 


11 

12 

13 

26 

32 

58 


Abbreviations 

CFO Chief Financial Officer 

CHCO Chief Human Capital Officer 

CIO Chief Information Officer 

COO Chief Operating Officer 

DLC Depository Library Council 

ECO Employee Communications Office 

FDLP Federal Depository Library Program 

GPO Government Printing Office 

GPRA Government Performance and Accountability Act 

IEEE Institute of Electrical and Electronics Engineers 

IT Information Technology 

NDIIPP National Digital Information Infrastructure and Preservation 
Program 

OMB Office of Management and Budget 


This is a work of the U.S. government and is not subject to copyright protection in the 
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GAO-04-830 GPO TVansformation 








1 

4 GAO 

^^^^^^^^Accountability » Integrity « Reliability 

United States General Accounting Office 
Washington, D.C. 20548 


June 30, 2004 

The Honorable Ted Stevens 
Chairman 

The Honorable Robert C. Byrd 
Ranking Minority Member 
Committee on Appropriations 
United States Senate 

The Honorable Ben Nighthorse Campbell 
Chairman 

The Honorable Richard J. Durbin 
Ranking Minority Member 
Subcommittee on Legislative Branch 
Committee on Appropriations 
United States Senate 

The transformation of the Government Printing Office (GPO) has begun. 
The trend towards producing government documents through electronic 
publishing technology and providing public government documents 
through the Internet has affected all of GPO's programs, reducing the 
production, procurement, and sales of printed products. These have 
historically provided GPO with a vital source of revenue to supplement its 
annual appropriation. GPO is making operational and cultural changes to 
help ensure that it stays relevant and efficient, and that it meets its 
customers’ needs. 

This report encompasses our body of work on GPO from the past year and 
responds to both (1) a mandate from the Senate Committee on 
Appropriations, included in Senate Report 107-209, to examine the current 
state of printing and dissemination of federal government information and 
provide strategic options for GPO to enhance the efficiency, economy, and 
effectiveness of its printing and dissemination operations and (2) your 
request that we conduct a general management review of GPO to focus on 
GPO’s efforts to transform. The Subcommittee requested that the general 
management review be done in conjunction with the committee’s 
mandated review. We have issued several products in response to and 
based on the legislative mandate and request, including briefings on the 
current printing and dissemination operations at GPO, the results of a 
panel discussion on the future role of GPO and a survey of executive 
branch agencies’ use of GPO services, and selected approaches for 
workforce restructuring at GPO. We have also issued a report containing 


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GAO-04-830 GPO Transformation 




recommendations to assist GPO’s transformation through strategic human 
capital management efforts and a congressional testimony outlining 
technological changes affecting GPO’s mission. 

This report summarizes and, as appropriate, expands upon and updates our 
earlier work. First, in response to the Senate Committee’s mandate, we 
describe the current state of printing and dissemination of federal 
government information, which is based on a survey of GPO’s executive 
branch customers and a panel of experts who discussed (1) trends in 
printing, publishing, and dissemination and (2) the future role of GPO. 
Second, our general management review focused on actions GPO’s 
leadership has taken and can take to transform itself and develop a 
strategic plan, and how GPO can work towards building a world-class 
organization. 

In completing the general management review, we used as the analytical 
framework for collecting data and reviewing GPO’s transformational 
efforts the key practices and implementation steps for mergers and 
organizational transformations that we had previously developed. 1 

We performed our work from March 2003 through June 2004. During this 
time we worked cooperatively with GPO leaders, meeting regularly with 
them about the progress of their transformation initiatives and providing 
them with information that they plan to use to develop GPO’s strategic plan 
and strengthen management. For the general management review 
examining GPO’s transformational efforts, we followed generally accepted 
government auditing standards. Because the nature of the work in 
response to the mandate was future oriented and focused on technological 
developments, not organizational management, we determined that it could 
not be considered an audit subject to generally accepted government 
auditing standards. However, in our approach to the work, we followed 
appropriate quality control procedures consistent with the generally 
accepted standards. For additional information on our scope and 
methodology, see appendix I. 


‘U.S. General Accounting Office, Results-Oriented Cultures: Implementation Steps to 

Assist Mergers and Organizational Transformations, GAO-03-669 (Washington, D.C.: 
July 2, 2003), and Highlights of a GAO Forum: Mergers and Transformation: Lessons 
Learned for a Department of Homeland Security and Other Federal Agencies, GAO-03- 
293SP (Washington, D.C.: Nov. 14, 2002). 


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GAO-04-830 GPO Transformation 





Results in Brief 


Printing and dissemination in the federal government, as in private 
industry, are being transformed by the changing technological 
environment. Documents are increasingly being created and disseminated 
electronically, sometimes without ever being printed on paper. Federal 
agencies are publishing more documents directly to the Web and are doing 
more of their printing and dissemination of information directly, without 
using GPO services. At the same time, as more and more government 
documents are being created and managed electronically, the public is 
obtaining government information from government Web sites, such as 
GPO Access (http://www.gpoaccess.gov), rather than purchasing paper 
copies of government documents. As a result, GPO has seen declines in its 
printing volumes, printing revenues, and document sales. The agency’s 
procured printing business has experienced a loss of $15.8 million over the 
past 5 years. The sales program lost $77 million over the same period. In 
addition, these changes are creating challenges for GPO’s long-standing 
structure for centralized printing and dissemination and its interactions 
with customer agencies. 

The Public Printer recognizes these challenges and in response has 
embarked upon an ambitious transformation. To assist in this effort, a 
panel of printing and dissemination experts that we convened provided a 
number of suggestions for GPO to consider as it transforms itself. The 
panel suggested that GPO do the following: 

• Develop a business plan focused on information dissemination as its 
primary goal, rather than printing. 

• Collect data to demonstrate that the services it provides—printing and 
publishing as well as information dissemination to the public through its 
library system and Web site—add value. 

• Establish partnerships with other agencies that disseminate information 
and enhance its current partnerships. 

• Ensure that its internal operations—including technology, how it does 
business with its customers, management information systems, and 
training—are adequate for efficient and effective management of core 
business functions and for service to its customers. 

In its efforts to transform, GPO can use the nine key practices listed below 
that we identified in previous work. One of these practices, related to 


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GAO-04-830 GPO Transformation 






ensuring that top management drives the transformation, has already been 
fully applied by GPO’s leadership, and GPO has begun to implement each of 
the remaining eight practices. To fully implement the remaining practices, 
GPO will need to take additional actions, such as establishing its mission 
and strategic goals and developing a plan for its transformation. The status 
of GPO’s efforts with respect to the key transformation practices is 
summarized in table 1. 



Table 1: Status of GPO’s Adoption of Key Practices Associated with Transformations 

Practice 

GPO status 

Ensure top leadership drives the transformation. 

GPO has fully implemented this practice through the Public Printer’s 
actions to make a clear and compelling case for transforming GPO. 

He has also established an organizational structure to help balance 
transformation with the delivery of services. 

Establish a coherent mission and integrated strategic goals to 
guide the transformation. 

GPO has not established a mission and strategic goals; however, 

GPO has set goals for its individual operating units, which help to 
create a more results-oriented culture. 

Focus on a key set of principles and priorities at the outset of the 
transformation. 

GPO has not adopted a set of agencywide principles or core values; 
however, a GPO unit has benefited from establishing core values. 

Set implementation goals and a timeline to build momentum and 
show progress from day one. 

GPO has not established specific time frames and goals for its 
transformation; however, it has planned some initial steps to show 
progress. 

Dedicate an implementation team to manage the transformation 
process. 

GPO’s management council focuses on transformational issues, but 
attention to the daily activities of the transformation could be 
strengthened. 

Use the performance management system to define the 
responsibility and assure accountability for change. 

GPO is developing a new performance management system for its 
executives, but needs to complete its strategic plan before it can 
align performance expectations with organizational goals. 

Establish a communication strategy to create shared expectations 
and report related progress. 

GPO leadership has communicated early and often, ensured 
consistency of message, and encouraged two-way communication. 
However, employees want additional information to meet their 
specific needs. 

Involve employees to obtain their ideas and gain ownership for the 
transformation. 

GPO has informed employees of changes, but has the opportunity to 
more fully involve them in the transformation. 

Build a world-class organization. 

GPO has taken steps to apply best practices in human capital, 
information technology, and financial management, but significant 
challenges remain. 


Source: GAO. 


Throughout this report, we make recommendations to assist GPO with the 
implementation of the eight practices that have not been completely 
implemented. 


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GAO-04-830 GPO Transformation 

















GPO leadership has articulated a vision to transform GPO into a world- 
class organization and has taken some initial steps toward this objective, 
most notably with respect to human capital management. GPO’s Human 
Capital Office is using our October 2003 report * 2 as GPO’s roadmap for 
transforming its human capital management and is actively implementing 
the recommendations we made. For example, the Human Capital Office 
reorganized into customer-focused teams devoted to meeting the human 
capital needs of GPO’s operating units. 3 With respect to information 
technology and financial management, GPO has taken initial steps towards 
improvement, but continued leadership attention is needed. For example, 
the Chief Information Officer (CIO) is issuing new security-related policies 
and procedures in response to problems identified by an external audit 
organization, and the Chief Financial Officer (CFO) has adopted the best 
practice of regularly providing financial information to GPO’s key decision 
makers. We make recommendations to GPO leadership to build on its 
progress by further adopting best practices in the areas of information 
technology and financial management. For example, GPO should 
implement an information technology investment management process to 
help management choose, monitor, and evaluate projects. With regard to 
financial management, GPO needs to train its line managers to effectively 
use the financial data that they receive from the CFO. 

We provided a draft of this report on June 9, 2004 to the Public Printer for 
review and comment. We received written comments from the Public 
Printer, which are reprinted in appendix II. The Public Printer agreed with 
the content, findings, and recommendations of the draft report, noting that 
our report will be a major part of GPO’s transformation process. GPO also 
provided minor technical clarifications, which we incorporated as 
appropriate in this report. 


Background 


GPO’s mission includes both printing government documents and 
disseminating them to the public. Under the public printing and documents 
statutes of Title 44 of the U.S. Code, GPO’s mission is to fulfill the printing 


^.S. General Accounting Office, Government Printing Office: Advancing GPO’s 
Transformation Effort through Strategic Human Capital Management, GAO-04-85 

(Washington, D.C.: Oct. 20, 2003). 

3 GPO’s six operating units are the Customer Services division; Information Dissemination 
division; plant operations division; office of information technology and systems; office of 
human capital; and office of finance and administration. 


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GAO-04-830 GPO Transformation 







needs of the federal government and to distribute those printed products to 
the public. All printing for the Congress, the executive branch, and the 
judiciary—except for the Supreme Court—is to be done or contracted by 
GPO except for authorized exemptions. 4 The Superintendent of 
Documents, who heads GPO’s Information Dissemination division, 
disseminates these government products to the public through a system of 
nearly 1,300 depository libraries nationwide (the Federal Depository 
Library Program), GPO’s Web site (GPO Access), telephone and fax 
ordering, an on-line ordering site, and its bookstore in Washington, D.C. 
The Superintendent of Documents is also responsible for classification and 
bibliographic control of tangible and electronic government publications. 

Printing and related services. In providing printing and binding services 
to the government, GPO generally dedicates its in-house printing 
equipment to congressional printing, contracting out most printing for the 
executive branch. 5 6 Table 2 shows the costs of these services in fiscal year 
2003, as well as the source of these printing services. 


Table 2: Printing, Binding, and Related Services Provided to the Congress and 
Federal Agencies for Fiscal Year 2003 


Dollars in millions 

Printing source 

Billings for 
congressional services 

Billings for federal 
agency services 

Produced at in-house printing plant 

$72.6 

$94.9 

Procured from private sector 

1.4 

474.7 

Total 

$74.0 

$569.6 

Source: GPO. 


Documents printed for the Congress include the Congressional Record , 
hearing transcripts, bills, resolutions, amendments, and committee reports, 
among other things. GPO also provides publishing support staff to the 
Congress. These support staff mainly perform print preparation activities, 


4 44 U.S.C. §501. Departments, agencies, or their components may be exempted from the 
provisions of Title 44 by having (1) their own authorized printing plant approved by the Joint 

Committee on Printing, (2) a statutory exemption, or (3) a waiver from the Joint Committee 
on Printing to procure printing without going through GPO. 

6 Among the printing it performs in house for executive agencies is the Federal Register. 


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GAO-04-830 GPO Transformation 













such as typing, scanning, proofreading, and preparation of electronic data 
for transmission to GPO. 

GPO generally provides printing services to federal agencies through an 
acquisition program that relies on the commercial sector by passing the 
contractors’ costs on to its government customers. Prequalified businesses, 
small to large in size, compete for printing jobs that GPO printing experts 
oversee to ensure that the contractors meet customer requirements for 
quality. For this service, GPO attaches a 7 percent surcharge that GPO 
officials have stated was established partly by what the market will bear 
and partly by what is needed to cover GPO expenses. GPO procures about 
83 percent of printing for federal agencies from private contractors and 
does the remaining 17 percent at its own plant facilities. Most of the 
procured printing jobs (85 percent for the period from June 2002 to May 
2003) were for under $2,500 each. 

Besides printing, GPO provides a range of services to agencies including, 
for example, CD-ROM development and production, archiving/storage, 
converting products to electronic format, Web hosting, and Web page 
design and development. 

Dissemination of government information. The Superintendent of 
Documents is responsible for the acquisition, classification, dissemination, 
and bibliographic control of tangible and electronic government 
publications. Regardless of the printing source, Title 44 requires that 
federal agencies make all their publications available to the Superintendent 
of Documents for cataloging and distribution. 

The Superintendent of Documents manages a number of programs related 
to distribution, including the Federal Depository Library Program (FDLP), 
which provides copies of government publications to libraries across the 
country for public use. 6 Generally, documents distributed to the libraries 
are those that contain information on U.S. government activities or are 


6 Examples of other distribution-related programs are the International Exchange Service, 
administered by GPO on behalf of the Library of Congress, to exchange U.S. government 
publications for foreign government publications, which can then be made available to the 
public; the By-Law Distribution program, which supports the requirements of executive 
agencies and the Congress by providing publications prescribed by statute free of charge to 
authorized recipients; and Agency Distribution Services, which support the requirements of 
executive branch agencies for distribution of publications through the performance or 
procurement of mail list distribution or order-fulfillment services. 


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GAO-04-830 GPO Transformation 






important reference publications. GPO evaluates documents to determine 
whether they should be disseminated to the depository libraries. When 
documents are printed through GPO, it evaluates them at the time of 
printing; if documents are not printed through GPO, agencies are to notify 
GPO of these documents, so that it can evaluate them and arrange to 
receive any copies needed for distribution. A relatively small percentage of 
the items printed through GPO for the executive branch are designated as 
depository items. 

Another distribution program under the Superintendent of Documents is 
the Sales of Publications Program, which purchases, warehouses, sells, and 
distributes government documents. Publications are sold by mail, 
telephone, and fax; through GPO’s on-line bookstore; and at its bookstore 
in Washington, D.C. In addition, GPO provides electronic copies of the 
Congressional Record and other documents to the Congress, the public, 
and the depository libraries in accordance with the Government Printing 
Office Electronic Information Access Enhancement Act of 1993. 

The Superintendent of Documents is also responsible for GPO’s Web site, 
GPO Access, which is one mechanism for electronic dissemination of 
government documents to the public through links to over 268,000 
individual titles on GPO’s servers and other federal Web sites. More than 2 
billion documents have been retrieved by the public from GPO Access 
since August 1994; almost 372 million downloads of government 
information from GPO Access were made in fiscal year 2002 alone. About 
two-thirds of new FDLP titles are available online. 

GPO Is Funded by 
Appropriations and by a 
Revolving Fund 

GPO receives funding from two appropriations: (1) the Congressional 
Printing and Binding Appropriation, which is used for in-house printing of 
congressional activities and (2) the Salaries and Expenses Appropriation, 
which is used for certain Superintendent of Documents activities. 

In addition to these appropriations, GPO has a business-oriented revolving 
fund, which is used to fund its procured printing, document sales, and 
other operations. The revolving fund was designed to financially “break 
even” by recovering costs through rates, prices, and other charges to 
customers for goods and services provided by GPO. The revolving fund is 
supported by the 7 percent service charge levied on agency customers of 
GPO-procured printing services and also receives funds from sales of 
publications to the general public. 


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Trends in Printing and Current printing industry trends show that the total volume of printed 

Information Dissemination material has been declining for the past few years, and this trend is 

expected to continue. A major factor in this declining volume is the use of 
electronic media options. The move to electronic dissemination is the 
latest phase in the electronic publishing revolution that has transformed 
the printing industry in recent decades. This revolution was driven by the 
development of increasingly sophisticated electronic publishing (“desktop 
publishing”) software, run on personal computers, that allows users to 
design documents including both images and text, and the parallel 
development of electronic laser printer/copier technology with capabilities 
that approach those of high-end presses. These tools allow users to 
produce documents that formerly would have required professional 
printing expertise and large printing systems. 

These technologies have brought major economic and industrial changes to 
the printing industry. As electronic publishing software becomes 
increasingly sophisticated, user-friendly, and reliable, it approaches the 
ideal of the print customer being able to produce files that can be 
reproduced on the press with little or no intervention by printing 
professionals. As the printing process is simplified, the customer can take 
responsibility for more of the work. Thus, the technologies diminish the 
value that printing organizations such as GPO add to the printing process, 
particularly for simpler printing jobs. Nonetheless, professional expertise 
remains critical for many aspects of printing, and for many print jobs it is 
still not possible to bypass the printing professional altogether. 

The advent of the Internet permits the instantaneous distribution of the 
electronic documents produced by the new publishing processes, breaking 
the link between printing and dissemination. With the increasing use of the 
Web, the electronic dissemination of information becomes not only 
practical, but also more economical than dissemination on paper. 

As a result, many organizations are changing from a print to an electronic 
focus. In the early stages of the electronic publishing revolution, 
organizations tended to prepare a document for printing and then convert 
the print layout to electronic form—in other words, focusing on printing 
rather than dissemination. Increasingly, however, organizations are 
changing their focus to providing information—not necessarily on paper. 
Today an organization may employ computers to generate both plates used 
for printing as well as electronic files for dissemination. Tomorrow, the 
organization may create only an electronic representation of the 


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GAO-04-830 GPO TYansformation 





information, which can be disseminated through various media, such as 
Web sites. * * * * * * 7 A printed version would be produced only upon request. 


Government Printing 
and Dissemination 
Changes Are Forcing 
GPO’s Transformation 


As in private industry, printing and dissemination in the federal government 
are being heavily affected by the changing technological environment. This 
new environment presents both financial and management challenges to 
GPO. Just as the volume of material provided to private firms for printing 
has decreased over the past few years, so has the volume of material that 
federal agencies provide to GPO for printing. In addition, federal agencies 
are publishing more items directly to the Web—without creating paper 
documents at all—and are able to print and disseminate information 
without using GPO services. Similarly, individuals are downloading 
documents from government Web sites, such as GPO Access, rather than 
pm-chasing paper copies of government documents, thus reducing 
document sales. As a result, GPO’s financial condition has deteriorated, 
and the relationship between GPO and its federal agency customers has 
changed. 


Changes in Government The reduction in the demand for procured printing and for printed 

Printing and Dissemination government documents has resulted in reduced revenues to GPO. These 
Result in Reduced Revenues diminished revenues, combined with steady expenses and management’s 

use of retained earnings for GPO-wide needs, have totally depleted the 

retained earnings from revolving fund activities. These retained earnings 

have gone from a surplus of $100 million in fiscal year 1998 to a deficit of 
$19 million in fiscal year 2003. Figure 1 shows the declining trend in 

retained earnings. 


7 Using tools such as the Extensible Markup Language (XML), for example, an organization 
could prepare one document that would automatically be interpreted to display 
appropriately on a number of different display devices, including paper. For more 
information on XML, see U.S. General Accounting Office, Electronic Government: 
Challenges to Effective Adoption of the Extensible Markup Language , GAO-02-327 
(Washington, D.C.: Apr. 5, 2002). 


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GAO-04-830 GPO Transformation 








Figure 1: GPO Retained Earnings for Fiscal Years 1998-2003 

Retained earnings (dollars in thousands) 

120,000 



y-' ^ 

Fiscal year 

Source: GAO analysis of GPO financial data. 


Note: The accounting adjustment in 2000 reflects the reclassification of the book value of an air- 
conditioning system. Dollar amounts have not been adjusted for inflation. 

Specifically, most of the reductions to revenues for GPO’s revolving fund 
activities are from two sources: (1) losses to the sales of publications 
operations 8 and (2) adjustments to actuarial calculations of future 
liabilities for GPO’s workforce compensation. 9 Additional reductions to 
retained earnings resulted from GPO’s procured printing operations and 


8 The sales of publications program absorbed additional expenses of $12 million for the 
direct write-down of the Integrated Processing System, a major system intended to 
automate certain functions for the document sales program and products. Sales of 
publications operations also include the distribution of publications on behalf of customer 
agencies. In addition, GPO management stated that the sales program had accumulated 
overhead expenses of $54.7 million over the same 5-year period, which contributed to its 
overall losses. 

9 GPO used $53.3 million to comply with new intragovemmental accounting requirements 
under the Federal Employees’ Compensation Act (U.S. Treasury, Financial Management 
Service, Federal Intragovemmental Transactions Accounting Policies Guide , Sept. 28, 
2001 ). 


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GAO-04-830 GPO Transformation 









regional printing. 10 (See fig. 2.) Also, retained earnings were used to provide 
the Retirement Separation Incentive Program for reductions to GPO’s 
workforce. 11 


Figure 2: GPO Revolving Fund Activities Accumulated Losses to Retained Earnings 
for Fiscal Years 1999-2003 (Dollars in Millions) 



Regional printing 
Procured printing 

Federal Employees' Compensation 
Act changes 


Sales of publications 

Source: GAO analysis of GPO financial data. 


Note: Dollar amounts have not been adjusted for inflation. 

Losses to the sales program account for the largest reductions to GPO’s 
retained earnings. The sales program has had a net loss of $77 million over 
the past 5 years, $20 million in fiscal year 2003 alone. According to GPO, 
these losses are due to a downward trend in customer demand for printed 
publications that has significantly reduced document sales revenues. For 
example, according to the Superintendent of Documents, GPO sold 35,000 
subscriptions to the Federal Register 10 years ago and now sells 2,500; at 
the same time, over 4 million Federal Register documents are downloaded 


10 GPO closed its last remaining regional printing office in Denver, Colorado, on April 21, 

2004. 

“The Retirement Separation Incentive Program had total expenses of $10.4 million to 
reduce the GPO workforce. 


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GAO-04-830 GPO Transformation 

















each month from GPO Access. 12 The Superintendent also reported that the 
overall volume of sales has dropped from 24.3 million copies sold in fiscal 
year 1993 to 4.4 million copies sold in fiscal year 2002. As a result, revenues 
have not covered expenses, and the sales program has sustained significant 
annual operating losses. (See fig. 3.) 


Figure 3: GPO Revenues and Expenses from Sales of Publications for Fiscal Years 
1999-2003 

Dollar amount (in millions) 

80 



Fiscal year 


Revenues 

Expenses 

Source: GAO analysis of GPO financial data. 


Note: Dollar amounts have not been adjusted for inflation. 

By comparison, the losses from GPO’s procured printing business are less 
significant: $15.8 million over the last 5 years. According to GPO, its federal 
agency print jobs at one time generated close to $1 billion a year. In fiscal 
year 2003, the amount was just over half that—$570 million. 


12 Judith C. Russell, U.S. Superintendent of Documents, “The Federal Depository Library 
Program: Current and Future Challenges of the Electronic Transition,” paper presented at 
the annual meeting of the American Association of Law Libraries (Seattle, Wash.: July 15, 
2003). 


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GAO-04-830 GPO Transformation 




































These changes in federal printing and dissemination fire also creating 
challenges for GPO’s long-standing structure for centralized printing and 
dissemination. As mentioned earlier, agencies are to notify GPO of 
published documents (if they used other printing sources), which allows 
GPO to review agency documents to determine whether the documents 
should be disseminated to the depository libraries. If they should be, GPO 
can then add a rider to the agency’s print contract to obtain the number of 
copies that it needs for dissemination. 13 However, if agencies do not notify 
GPO of their intent to print, these documents become “fugitive documents” 
and may not be available to the public through the depository library 
program. 

In responding to our surveys, executive branch agencies reported that they 
are producing a significant portion of their total printing volume internally, 
generally on desktop publishing and reproduction equipment instead of 
large-scale printing equipment. In addition, while most agencies (16 of 21) 
reported that they have established procedures to ensure that documents 
that should be disseminated through the libraries are forwarded to GPO, 5 
of 21 did not have such procedures, thus potentially adding to the fugitive 
document problem. 

Responding agencies also reported that although currently more 
government documents are still being printed than are being published 
electronically, more and more documents are being published directly to 
the Web, and their numbers are expected to grow in the future. Most 
agencies reported that documents published directly to the Web were not 
of the type that is required to be sent to GPO for dissemination. However, a 
GPO official, in commenting on this, said that unless there is a specific 
reason why a document should not be disseminated to the public, such as if 
it is classified or of administrative interest only, GPO should have the 
opportunity to evaluate whether that document is suitable for 
dissemination through its depository library system. 

Of the five agencies that did publish eligible documents electronically, only 
one said that it had submitted these documents to GPO. As electronic 
publishing continues to grow, such conditions may contribute further to the 
fugitive document problem. 


Changes in Printing and 
Dissemination Affect How 
Federal Agencies Use GPO 
Services 


13 Receiving these copies at the rate of the original order is much less expensive than 

arranging a separate print run. 


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GAO-04-830 GPO Transformation 






Change in Printing and 
Dissemination Affect 
Relationship between GPO 
and Executive Branch 
Customers 


The ongoing agency shift toward electronic publishing is also creating 
challenges for GPO’s existing relationships with its executive branch 
customers. In responding to our surveys, executive branch agencies 
expressed overall satisfaction with GPO’s products and services and 
expressed a desire to continue to use these services for at least part of their 
publishing needs. However, these agencies reported a few areas in which 
GPO could improve—for example, in the presentation of new products and 
services. (We provide further results from our surveys on agency 
satisfaction in app. III.) 


Further, some agencies indicated that they were less familiar with and less 
likely to use GPO’s electronic products and services. As shown in table 3, 
these agencies were hardly or not at all familiar with services such as Web 
page design and development (8 of 28), Web hosting services (8 of 29), and 
electronic publishing services (5 of 28). As a consequence, these agencies 
were also less likely to use these services. With the expected growth in 
electronic publishing and other services, making customer agencies fully 
aware of GPO’s capabilities in these areas is important. Table 3 provides 
agency responses on their familiarity with various GPO products and 
services. 



Table 3: Executive Agency Familiarity with GPO Services 

Agency familiarity with GPO products/services 

GPO product/service 

Extremely 

Very 

Moderately 

Somewhat 

Hardly or 
not at all 

Total 8 

Archiving/storage 

2 

5 

7 

5 

9 

28 

Binding 

6 

12 

4 

4 

3 

29 

CD-ROM development and production 

4 

6 

12 

3 

4 

29 

Converting products to electronic format 

4 

5 

13 

3 

4 

29 

Custom finishing 

5 

8 

8 

4 

4 

29 

Duplication/print on demand 

9 

8 

7 

2 

2 

28 

Electronic publishing 

2 

9 

8 

4 

5 

28 

Federal Depository Library Program 

12 

10 

4 

1 

2 

29 

Financial management services 

4 

9 

7 

6 

3 

29 

GPO sales program 

8 

8 

8 

2 

3 

29 

Institute for Federal Printing and Electronic Publishing 

12 

7 

4 

4 

2 

29 

Large format printing 

4 

7 

7 

4 

6 

28 

Production Inventory Control System 

7 

6 

5 

5 

6 

29 


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GAO-04-830 GPO Transformation 























(Continued From Previous Page) 


Agency familiarity with GPO products/services 


GPO product/service 

Extremely 

Very 

Moderately 

Somewhat 

Hardly or 
not at all 

Total 8 

Preflighting b 

7 

9 

7 

3 

3 

29 

Press sheet inspection 0 

14 

10 

2 

2 

1 

29 

Printing (in-house) 

17 

6 

3 

2 

1 

29 

Product dissemination 

8 

7 

7 

2 

5 

29 

Reimbursable storage/distribution 

5 

2 

10 

6 

6 

29 

Typography/design 

12 

6 

4 

4 

3 

29 

Web hosting 

1 

4 

6 

10 

8 

29 

Web page design/development 

1 

5 

5 

9 

8 

28 


Source: GAO analysis of agency-reported data. 
a Not all agencies answered every question. 

b Preflighting is checking printed or electronic copy before printed copies are made. 

'Press sheet inspection is a review of printed sheets before printed copies are made. 

A few of the responding agencies reported less than satisfied ratings for 
some GPO products and services. Among these services were financial 
management services (7 of 23) and Web page design/development (3 of 10). 
Agencies also reported not using some GPO products and services, 
including Web hosting and Web page design/development services (18 of 
28), converting products to electronic format (11 of 28), and electronic 
publishing services (9 of 28). Table 4 shows the results of our survey on 
agency satisfaction with GPO services, which includes agencies’ reports of 
products and services that they do not use. 


Table 4: Executive Agency Level of Satisfaction with GPO Services 




Agency satisfaction with GPO products/services 



GPO product/service 

Excellent 

Above 

average 

Average 

Below 

average 

Don’t 
Poor use 

Total 8 

Archiving/storage 

1 

4 

6 

0 

2 

15 

28 

Binding 

4 

9 

4 

0 

2 

9 

28 

CD-ROM development and production 

3 

4 

9 

1 

2 

9 

28 

Converting products to electronic format 

3 

6 

7 

0 

1 

11 

28 

Custom finishing 

4 

6 

4 

0 

2 

12 

28 

Duplication/print on demand 

5 

5 

6 

1 

2 

9 

28 

Electronic publishing 

4 

7 

7 

0 

1 

9 

28 


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GAO-04-830 GPO Transformation 




























(Continued From Previous Page) 


Agency satisfaction with GPO products/services 


GPO product/service 

Excellent 

Above 

average 

Average 

Below 

average 

Poor 

Don’t 

use 

Total 8 

Federal Depository Library Program 

9 

6 

4 

3 

2 

3 

27 

Financial management services 

2 

4 

10 

3 

4 

5 

28 

GPO sales program 

5 

4 

10 

2 

1 

5 

27 

Institute for Federal Printing and Electronic Publishing 11 

7 

5 

0 

1 

4 

28 

Large format printing 

4 

3 

9 

0 

1 

10 

27 

Production Inventory Control System 

2 

4 

11 

1 

1 

9 

28 

Preflighting 

2 

8 

6 

0 

2 

10 

28 

Press sheet inspection 

8 

9 

5 

0 

2 

4 

28 

Printing (in-house) 

7 

7 

5 

2 

2 

5 

28 

Product dissemination 

4 

7 

6 

1 

2 

7 

27 

Reimbursable storage/distribution 

1 

2 

4 

0 

2 

19 

28 

Typography/design 

3 

9 

4 

1 

2 

9 

28 

Web hosting 

1 

2 

5 

1 

1 

18 

28 

Web page design/development 

1 

2 

4 

1 

2 

18 

28 

Source: GAO analysis of agency-reported data. 

a Not all agencies answered every question. 


GPO Is Taking Action to GPO officials agreed with our assessment of the impact of technological 

Address Challenges change and said they are taking action to make GPO a more customer- 

focused organization. According to these officials, GPO is 

• taking a new direction with its Office of Sales and Marketing, including 
hiring an outside expert and establishing nine national account 
managers, who spend most of their time in the field building 
relationships with key customers, analyzing their business processes, 
identifying current and future needs, and offering solutions; 

• working with its largest agency customer, the Department of Defense, to 
determine how to work more closely with large in-house printing 
operations; 

• evaluating recommendations received from the Depository Library 
Council; and 


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GAO-04-830 GPO Transformation 






















• continuing to implement a Demonstration Print Procurement Project, 
jointly announced with the Office of Management and Budget on June 6, 
2003. 

The Demonstration Print Procurement Project is to provide a Web-based 
system that will be a one-stop, integrated print ordering and invoicing 
system. The system is to allow agencies to order their own printing at 
reduced rates, with the option of buying additional printing procurement 
services from GPO. According to GPO, this project is also designed to 
address many of the issues identified through our executive branch 
surveys, particularly the depository library fugitive document problem. 

Recommended Next Steps Although executive branch agencies generally expressed satisfaction with 

GPO products and services, their survey responses indicate some areas for 
improvement. Accordingly, we recommend that the Public Printer 

• work with executive branch agencies to examine the nature of their in- 
house printing and determine whether GPO could provide these 
services more economically; 

• address the few areas in which executive branch agencies rated GPO’s 
products, services, and performance as below average; 

• reexamine GPO’s marketing of electronic services to ensure that 
agencies are aware of them; and 

• use the results of our surveys to work with agencies to establish 
processes that will ensure that eligible documents (whether printed or 
electronic) are forwarded to GPO for dissemination to the public, as 
required by law. 


Expert Panel Suggests 
Strategic Options for GPO’s 
Future Role 


The Public Printer and his leadership team recognize the challenges that 
they face in the very competitive printing and dissemination marketplace 
and have embarked upon an ambitious effort to transform the agency. First 
and foremost, the Public Printer agrees with the need to reexamine the 
mission of the agency within the context of technological change that 
underlies GPO’s current situation. To assist in that process, our expert 
panel developed a series of options for GPO to consider in its planning. 
Briefly, the panel suggested that GPO 


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GAO-04-830 GPO Transformation 





• develop a business plan to focus its mission on information 
dissemination as its primary goal, rather than printing; 

• demonstrate to its customers—including agencies and the public—the 
value it can provide; 

• improve and extend partnerships with agencies to help establish itself 
as an information disseminator; and 

• ensure that its internal operations—including technology, how it 
conducts business with its customers, management information 
systems, and training—are adequate for efficient and effective 
management of core business functions and for service to its customers. 

We shared the results of the panel with GPO leadership, who commented 
that the panel’s suggestions dovetail well with their own assessments. 
These leaders stated that they are using the results of the panel as a key 
part of the agency’s ongoing strategic planning process. The panel 
members are listed in appendix IV. 


Create a New Vision 
Focusing on Dissemination 


As a first step in this new vision, according to the panel, GPO needs to 
develop a business plan that emphasizes direct electronic dissemination 
methods over distribution of paper documents. The panel identified several 
elements that could be included in such a business plan: 

Improving GPO Access. GPO Access should be upgraded, and particular 
emphasis should be placed on improving the search capabilities. 

Investigating methods to disseminate information directly. For 

example, GPO could develop additional services to “push” data and 
documents into the hands of those who need or want them. To become 
more active in disseminating data, GPO could provide information to 
public interest or advocacy groups that are interested in tracking 
government information on certain subjects. These groups require 
something like a news clipping service, and the panel suggested that this is 


In view of the changing federal government printing and dissemination 
environment, the panel suggested that GPO first needs to create a new 
vision of itself as a disseminator of information, and not only a printer of 
documents. As one panel member put it, GPO should end up resembling a 
bank of information rather than a mint that stamps paper. 


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GAO-04-830 GPO TVansformation 





one way in which GPO could provide “value-added” service for which it 
could collect fees. 14 

Modernizing production processes. GPO should be moving toward 
production processes that will allow it to prepare a document once for 
distribution through various media (print or electronic). In the past, most 
organizations have focused on printing paper documents that are then 
turned into electronic ones. According to the panel members, the strategy 
for the future is to publish electronically and print only when necessary. 

Promote the federal use of metadata. GPO should support the use of 
metadata—descriptive information about the data provided that is carried 
along with the data—across the federal government as a requirement for 
electronic publishing. 

Providing increased support to the depository libraries. According to 
the panel, the depository libraries will continue to play an important role in 
providing access to electronically disseminated government information— 
through GPO Access and other tools—to that portion of the public that 
does not have access to the Internet. To support this role, GPO will have to 
ensure that the depository libraries receive training in electronic search 
tools, especially in GPO Access. 

GPO officials stated that its Office of Innovation and New Technologies, 
established in early 2003, is leading an effort to transform GPO into an 
agency “at the cutting edge of multichannel information dissemination.” 15 A 
major goal in this effort is to disseminate information while still addressing 
the need “to electronically preserve, authenticate, and version the 
documents of our democracy.” Also, GPO has established an Office of New 
Business Development that is to develop new products and service ideas 
that will result in increased revenues. GPO officials stated that they are 
using the results of the panel discussion to categorize and prioritize their 
initial compilation of ideas for new products and services and, in this 


14 GPO is authorized to collect fees to reimburse its revolving fund for services and supplies 

provided, including charges for overhead. 44 U.S.C. §309(b)(l). 

15 The mission of this office is to find new technologies that can help GPO with the 
challenges of acquiring, authenticating, versioning, disseminating, and preserving digital 
information. According to GPO, each of these functions related to digital asset management 
is crucial to its future. 


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GAO-04-830 GPO Transformation 






context, plan to assess how these ideas would improve operations and 
revenue. 

Demonstrate Value to 
Customers and the Public 

The panel also agreed that, while GPO appears to provide value to agencies 
because of its expertise in printing and dissemination, it is not clear that 
agencies and the general public realize this. Therefore, GPO should focus 
on demonstrating its value to federal agencies and to the public. According 
to the panel, areas that GPO could emphasize include the following: 

Providing competitively priced printing that meets customer needs. 

GPO should collect the data to show that it can, in fact, provide the “best 
value” for the government print dollar. GPO should demonstrate its 
capabilities by assisting agencies to select optimal alternatives for 
obtaining their printing. 

Providing expert assistance in electronic dissemination. Given GPO’s 
major role in providing information dissemination, one panel member 
suggested that GPO provide its expert advice on electronic Web site 
dissemination to agencies. Once again, GPO could develop information that 
demonstrates how it can add value in this area. 

Disseminating government information to the public. GPO should 
focus on demonstrating the usefulness of agencies’ sharing information 
with GPO for public dissemination. In addition, the depository libraries and 
GPO Access should be made better known to the public. GPO could 
demonstrate its value to the public as a trusted source of authentic 
government information. 

GPO agreed that demonstrating its value is an important part of its new 
customer service direction. GPO’s Office of Sales and Marketing is also 
working to augment customer service, including hiring an outside expert 
and establishing nine national account managers, as mentioned earlier. 

Establish Partnerships with 
Collaborating and Customer 
Agencies 

According to the panel, GPO should establish partnerships with other 
agencies and enhance the partnerships it already has. These partnerships 
can be used to assist GPO in establishing itself as a disseminator and 
depository of information and to expand agencies’ use of GPO in this role. 
Specifically, the panel suggested that GPO establish partnerships with the 
other information dissemination and preservation agencies (such as the 
National Library of Medicine, the Office of Scientific and Technical 


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GAO-04-830 GPO Transformation 







Information, the Library of Congress, and the National Archives and 
Records Administration) with which it has related responsibilities. 

Through ongoing dialogue with these agencies, GPO will be able to 

(1) coordinate standards and best practices for digitizing documents and 

(2) work with agencies to archive documents in order to keep them 
permanently available to the public. GPO could be successfully marketed 
as the source of government information for public use. 

In addition, the panel suggested that GPO improve and expand its 
partnerships with other agencies. Most agencies consider GPO a resource 
for printing documents; however, it now has the capability to assist in the 
collection and dissemination of electronic information. 

GPO agreed that partnerships with other agencies, particularly the 
information dissemination agencies, would be a key item in its 
transformation. GPO has made efforts to join various working groups 
within the government working on information dissemination issues. Most 
recently, the Public Printer has been added to the oversight committee of 
the National Digital Information Infrastructure and Preservation Program 
(NDIIPP), a national cooperative effort to archive and preserve digital 
information, led by the Library of Congress. 

Improve Internal Operations 

The panel suggested that GPO would need to improve its internal 
operations to be successful in the very competitive printing and 
dissemination marketplace. Panel members suggested that GPO consider 
the following strategies. 

Emphasize the use of technology to address future needs. The panel 
members suggested that GPO hire a chief technical officer (in addition to 
its chief information officer), who would focus on bringing in new printing 
and dissemination technologies while maintaining older technologies. 

Improve how it conducts business with its customers. An electronic 
means for submitting printing requests would streamline the printing 
process for GPO customers. One panel member noted that when his 
organization started an electronic submission system for manuscripts, the 
number of requests it received increased dramatically because such 
systems made it easier for the user. (GPO’s demonstration project, 
currently being piloted at the Department of Labor, includes use of a Web- 
based tool for submitting printing requests.) 


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GAO-04-830 GPO Transformation 





Improving management information systems. GPO should overhaul its 
outdated management information systems and acquire new ones that can 
provide management with the information it needs to effectively monitor 
operations and to make good business decisions. 

Enhance employee training. GPO’s transformation should include 
significant improvements to employee training. GPO customer service 
employees should have the knowledge they need to effectively assist 
customers not only in printing publications and creating electronic 
documents, but also in advising customers on the best form of 
dissemination (paper or electronic) for their jobs. 

GPO agreed that its internal operations need improvement. Among its 
actions to address the adequacy of its internal functions, GPO has hired a 
chief technical officer. The chief technical officer serves as a codirector of 
the Innovation and New Technology Office and provides principal guidance 
in the creation and development of technology designed to accelerate the 
transformation of GPO into a 21st century information organization using 
state of the art solutions to provide the highest quality government 
information services to the nation. 


GPO Has Made the 
Case for Change, but 
Actions to Advance 
Transformation 
Needed 


Large-scale change management initiatives, such as organizational 
transformations, are not simple endeavors and require the concentrated 
efforts of both leadership and employees to realize intended synergies and 
to accomplish new organizational goals. We have identified a number of 
key practices and related implementation steps that have consistently been 
found at the center of successful transformations. 16 Collectively, these key 
practices and implementation steps can help agencies transform their 
cultures so that they have the capacity to fulfill their promises, meet 
current and emerging needs, maximize their performance, and ensure 
accountability. GPO has applied some key practices as part of its 
transformation effort, such as involving top leadership and strategically 
communicating with employees and other stakeholders. However, it has 
not fully applied key practices that emphasize planning and goal setting. 
For example, GPO has not developed a plan for its transformation that 
would include goals and strategies to achieve its goals. Such a plan is 


16 U.S. General Accounting Office, Results-Oriented Cultures: Implementation Steps to 
Assist Mergers and Organizational Transformations, GAO-03-669 (Washington, D.C.: 
July 2, 2003). 


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GAO-04-830 GPO Transformation 







important to pinpoint performance shortfalls and gaps and suggest 
midcourse corrections. 


GPO’s Leadership Has 
Clearly Articulated the Need 
to Transform and Taken 
Steps to Ensure the 
Continued Delivery of 
Services 


Because transformation of an organization entails fundamental change, 
strong and inspirational leadership is indispensable. Our work has found 
that leadership articulating a succinct and compelling reason for change 
helps employees, customers, and stakeholders understand the expected 
outcomes of the transformation and engenders not only their cooperation, 
but also their ownership of these outcomes. In addition, to ensure that the 
productivity and effectiveness of the organization do not decline, 
leadership must also balance the continued delivery of services with 
transformation activities. 


Key transformation practice Implementation steps 

Ensure top leadership drives the • Define and articulate a succinct and compelling 
transformation. reason for change. 

• Balance continued delivery of services with 
transformation activities. 


On several occasions and to different audiences, the Public Printer has 
reiterated the need for GPO to move from the 19th century to the 21st 
century. The Public Printer bases his case for change on three interrelated 
points that are consistent with our findings discussed above: 

• GPO’s printing business and customer base has decreased significantly 
in recent years due to the government’s and public’s increased use of 
and reliance on electronic documents, necessitating GPO to establish 
itself as the leading organization within the federal government for 
dealing with the collection, authentication, and preservation of 
government documents—rather than a traditional printing operation. 

• GPO has failed to update its technological abilities to keep pace with 
changes in the information dissemination environment, and as a result 
must update its technology to address the needs of today’s customers 
and information users and stay alert to future trends and changing 
needs. 

• GPO’s retained earnings, which were normally available to fund 
technological investment, are virtually depleted, requiring GPO to 
change the way in which it does business to ensure that it can reverse 
the trend of financial losses. 


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GAO-04-830 GPO Transformation 








GPO’s precarious financial condition makes it essential that its leaders 
effectively balance transformation efforts with the continued delivery of 
services. The Public Printer created and filled eight top leadership 
positions. The creation of these positions recognized that the demands of 
transforming while managing an ongoing operation can strain leadership, 
as well as the importance of organizational structure as a key factor 
affecting an agency’s management control environment. These positions, 
which had no counterpart in GPO’s former organization, can help ensure 
that GPO balances its transformation efforts with its day-to-day operations. 
For example, the Chief Operating Officer (COO) focuses primarily on day- 
to-day activities, the Chief of Staff focuses on strategic planning, and the 
Chief Human Capital Officer (CHCO), CIO, and CFO address both types of 
activities within their respective functional areas. 17 (See fig. 4.) 


17 On June 3, 2004, GPO’s Chief of Staff was appointed to serve as Acting CHCO and the 
Public Printer’s Special Assistant following the departure of the CHCO. The Acting CHCO 
stated that GPO would continue implementing the many transformation efforts initiated by 
the Human Capital Office. 


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GAO-04-830 GPO Transformation 





Figure 4: GPO’s Organization as of June 2004 




New positions 


Source: GAO analysis. 


GPO Has Set Interim Goals 
for Its Operating Units 
While It Works on a 
Strategic Plan 


The mission and strategic goals of a transformed organization must 
become the focus of the transformation, define the culture, and serve as the 
vehicle for employees to unite and rally around. In successful 
transformation efforts, developing, communicating, and constantly 
reinforcing the mission and strategic goals give employees, customers, and 
stakeholders a sense of what the organization intends to accomplish, as 
well as helping employees determine how their positions fit in with the new 
organization and what they need to do differently to help the new 


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organization achieve success. Adopting leading practices for results- 
oriented strategic planning and reporting, including those mandated for 
executive agencies in the Government Performance and Results Act 
(GPRA), can help focus transformation efforts. While GPO is not required 
to follow GPRA, the act can provide a relevant framework for GPO to 
follow in developing its strategic plan. 18 GPRA requires that strategic plans 
include several elements, including a mission statement, goals and 
objectives, and approaches or strategies to achieve goals and objectives. 
The framework can help an agency meet management control standards by 
enabling top management review of actual performance against planned 
performance. 19 


Key transformation practice 

Implementation step 

Establish a coherent mission and 
integrated strategic goals to guide 
the transformation. 

Adopt leading practices for results-oriented strategic 
planning and reporting. 


GPO is establishing a mission and strategic goals. Its overall approach is to 
consider the information gathered in the past year on GPO’s current 
environment—including the results of our work—and develop its strategic 
plan by the summer of 2004. Specific responsibilities for drafting a strategic 
plan have been placed with the Chief of Staff, who, beginning in April 2004, 
held biweekly meetings with the Public Printer to discuss the direction for 
the strategic plan. 20 These meetings were meant to provide the Chief of 
Staff with updates on the Public Printer’s vision, which, according to a GPO 
official, is being developed as he meets with stakeholders and industry 
leaders. 

Over the past year, the Public Printer has spoken with employees, 
stakeholders, and the Congress to help focus and refine a vision for GPO’s 
future. On April 28, 2004, the Public Printer made his most clear and direct 
statement of his vision for GPO thus far, stating that GPO has “begun to 


18 U.S. General Accounting Office, Results-Oriented Government: GPRA Has Established a 
Solid Foundation for Achieving Greater Results, GAO-04-38 (Washington, D.C.: Mar. 10, 
2004). 

19 U.S. General Accounting Office, Standards for Internal Control in the Federal 
Government, GAO/AIMD-OO-21.3.1 (Washington, D.C.: November 1999). 

“GPO’s Chief of Staff will continue to have responsibility for GPO’s strategic planning in his 
new position as Special Assistant to the Public Printer and Acting CHCO. 


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GAO-04-830 GPO Transformation 








develop a new vision for the GPO: an agency whose primary mission will be 
to capture digitally, organize, maintain, authenticate, distribute, and 
provide permanent public access to the information products and services 
of the federal government.” GPO’s strategic plan has the potential to unite 
employees around the new mission and determine what they need to do to 
help GPO transform and achieve success in the new environment. 

Although GPO has not fully developed its mission and strategic goals, 
GPO’s leadership has started to change GPO’s culture by setting interim 
goals for major operating units. Managers told us that in the past, GPO’s 
culture was to not set goals in order to avoid being held accountable for 
results. More specifically, GPO did not set or track any organizational goals 
and, therefore, did not develop the capacity to measure performance. The 
COO began to change GPO’s culture by leading an initiative in October 2003 
to develop goals for its operating units and told us that it was important to 
begin to focus managers’ attention on priority issues and hold them 
accountable for progress. He said he viewed the interim goals as a 
necessary step to prepare GPO managers to operate in a results-oriented 
environment after GPO’s strategic plan is completed. 

The COO met with the heads of each business unit to develop goals that 
they thought would be consistent with GPO’s yet-to-be-developed strategic 
mission based on discussions with the Public Printer. Once the goals were 
developed, the COO and business unit managers identified areas where 
some interdependence with other managers’ goals might exist. Each 
manager is responsible for achieving between 6 and 11 goals that are 
specific to his or her business unit, and 6 additional goals that are common 
across GPO. The common goals are as follows: 

• offer training opportunities to all employees in necessary job skills; 

• establish baseline information on customer satisfaction; 

• resolve all reportable conditions from financial audits; 

• establish a line of communication through regular meetings to 
disseminate information; 

• complete second-level reorganizations; and 

• establish adequate off-site backup to enable continuity of essential 
operations. 


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Recommended Next Steps 


GPO’s efforts to set goals are a significant step toward strengthening 
communication and accountability; however, many of the goals do not 
emphasize outcomes. For example, one of the goals for both the Customer 
Services and Information Dissemination divisions is to implement the 
Office of Management and Budget (OMB) compact demonstration 
program. 21 While this demonstrates that GPO has incorporated cross¬ 
cutting goals between its operating units, this goal is a statement of a task 
to be accomplished rather than an outcome to be achieved. 

While goals are important for establishing accountability, so too are 
measures, because they allow leaders to perform their management control 
responsibilities for monitoring performance and ensuring resolution of 
identified performance gaps. GPO’s COO has stated that he would like to 
strengthen performance measurement as GPO sets its goals for fiscal year 
2005. To this end, GPO has the opportunity to learn from the practices of 
leading organizations that implemented results-oriented management. 
Among other things, such leading organizations generally developed 
measures that were tied to program goals, demonstrated the degree to 
which the desired results were achieved, and were limited to the vital few 
that were considered essential to producing data for decision making. 22 

Consistent with the efforts under way, the Public Printer should ensure that 
GPO’s strategic planning process includes development of 

• a comprehensive agency mission statement to define the basic purpose 
of GPO; 

• agencywide long-term goals and objectives to explain what results are 
expected from the agency’s main functions and when to expect those 
results; 

• approaches or strategies to achieve goals and objectives to align GPO’s 
activities, core processes, and resources to support achievement of 
GPO’s strategic goals and mission; 


21 GPO and OMB entered a compact on June 6, 2003, in which GPO would create a 
demonstration project designed to provide federal agencies flexibility in choosing their own 
printing services. 

^U.S. General Accounting Office, Executive Guide: Effectively Implementing the 
Government Performance and Results Act, GGD-96-118 (Washington, D.C.: June 1996). 


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• a description of the relationship between the long-term and annual goals 
to show expected progress; 

• an identification of key external factors to help determine what actions 
will be needed to meet the goals; and 

• a description of program evaluations used to establish or revise 
strategic goals, and a schedule for future program evaluations. 

The Public Printer should reinforce a focus on results by continuing efforts 
to set goals, measure performance, and hold managers accountable by 
adopting leading practices of organizations that have been successful in 
measuring their performance. First, the measures that GPO develops 
should be 

• tied to program goals and demonstrate the degree to which the desired 
results were achieved, 

• limited to the vital few that are considered essential to producing data 
for decision making, 

• responsive to multiple priorities, and 

• responsibility-linked to establish accountability for results. 

Second, GPO leadership needs to recognize the cost and effort involved in 
gathering and analyzing performance data and make sure that the data it 
collects are sufficiently complete, accurate, and consistent to be useful in 
decision making. 


GPO Can Strengthen Its 
Transformation by Focusing 
on a Key Set of Principles 
and Priorities 


Principles are the core values of the new organization; like the mission and 
strategic goals, they can serve as an anchor that remains valid and enduring 
while organizations, personnel, programs, and processes may change. Core 
values define the attributes that are intrinsically important to what the new 
organization does and how it will do it. They represent the institutional 


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GAO-04-830 GPO TVansformation 





beliefs and boundaries that are essential to building a new culture for the 
organization. 


Key transformation practice 

Implementation step 

Focus on a key set of principles 
and priorities at the outset of the 
transformation. 

Embed core values in every aspect of the 
organization to reinforce the new culture. 


GPO leadership has not adopted a set of agencywide core values to help 
unify GPO to achieve its transformation, but has created a task team under 
the direction of the Deputy Chief of Staff to develop them. Although the 
core values have yet to be developed, they are referenced in draft 
performance agreements for its senior managers. 

The experience of a GPO unit demonstrates the benefits of having core 
values. According to the Director of the Pueblo Document Distribution 
Center, core values were developed in 1998 that helped change the center’s 
culture and focus employees on improving the center’s performance. The 
employees at Pueblo had a series of meetings to develop and agree on the 
core values, thereby taking ownership of them and reinforcing employees’ 
understanding that they were responsible for the success of the Pueblo 
facility. Figure 5 shows a banner detailing these core values that hangs 
prominently in the facility. 


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GAO-04-830 GPO Transformation 






Recommended Next Steps 


Figure 5: Banner Displayed at GPO’s Pueblo Document Distribution Center 


"ORDER BILLING & 

WAREHOUSE MISSION 

A X ake the customer our PRIORITY. 

I mprove relations with our co-workers. 

5 uccessfully fill all orders. 

S END OUT NOTHING BUT OUR BEST WORK. 

I DENTIFY AND CORRECT MISTAKES. 

0 PERATE AS A DISCIPLINED GOAL ORIENTED TEAM. 
X EVER SAY "I CANT 


Employees said that the banner is a constant reminder that their individual 
and organizational success is dependent on how well they employ the core 
values as they serve their customers. The Pueblo Document Distribution 
Center Director said that establishing core values has helped employees 
take ownership for improving customer service, as measured by the 
center’s per order error rate. He said that the employees understand the 
importance of these core values because most of their work is done on a 
reimbursable basis for other federal agency customers, the center’s 
primary source of funding. Efforts to improve customer service are 
consistent with the recommendation made by the panel of printing and 
information dissemination experts we convened. 

The Public Printer should 

• articulate to all employees how the core values can guide GPO’s 
transformation and serve to anchor GPO’s transformation efforts and 


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GAO-04-830 GPO Transformation 










ensure core values developed by units within GPO are consistent with 
GPO’s agencywide core values. 


GPO Does Not Have a 
Transformation Plan, but 
Has Taken Steps to 
Demonstrate Progress 


Because a transformation is a substantial commitment that could take 
years to complete, it must be carefully and closely managed. As a result, it 
is essential to establish and track implementation goals and establish a 
timeline to pinpoint performance shortfalls and gaps and suggest 
midcourse corrections. Further, research suggests that failure to 
adequately address—and often even consider—a wide variety of people 
and cultural issues is at the heart of unsuccessful transformations. Thus, 
people and cultural issues must be monitored from day one of a 
transformation. 


Key transformation practice Implementation steps 


Set implementation goals and a 
timeline to build momentum and 
show progress from day one. 


• Make public implementation goals and timeline. 

• Seek and monitor employee attitudes and take 
appropriate follow-up actions. 

• Identify cultural features of transforming 
organizations. 

• Attract and retain key talent. 

• Establish an organizationwide knowledge and skills 
inventory. 


Make public implementation goals and timeline. GPO has not 

established a transformation plan with specific time frames and goals for 
which leadership would be held accountable. Although GPO leadership has 
stated that a critical phase of its transformation is to develop a strategic 
plan by the summer of 2004, other more specific goals and timelines for the 
transformation, which could be linked to those being included in the 
strategic plan, are under development. 

GPO has the opportunity to ensure that its transformation remains on track 
and is ultimately successful by applying project management principles. 
Project management is a control mechanism that provides some assurance 
that desired outcomes can be achieved. It involves establishing key goals, 
tasks, time frames, and responsibilities that guide project accomplishment 
and ensure accountability. GPO leaders have acknowledged general 
weaknesses in GPO’s project management capabilities and have identified 
this as a skills gap that is being addressed through training initiatives. By 
enhancing project management skills at various levels of the organization 
and applying project management principles to key efforts like the 


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GAO-04-830 GPO TVansformation 








transformation, GPO can have greater assurance that these efforts will 
produce desired outcomes. 

Seek and monitor employee attitudes and take appropriate follow¬ 
up actions. Because people are the drivers of any merger or 
transformation, monitoring their attitudes is vital. Top leadership should 
also take appropriate follow-up actions to avoid creating negative attitudes 
that may translate into actions that could have a detrimental effect on the 
transformation. 

In February 2003, GPO leadership sought employee attitudes by 
implementing an employee climate survey, an important first step to 
establish a baseline on employee attitudes and concerns. After the survey 
was completed, GPO leadership adopted recommendations to address 
employee concerns. GPO will have the opportunity to take additional 
follow-up actions based on a second employee survey it plans to administer 
in the coming months. This survey has the potential to provide GPO 
leadership with updated information on GPO employee attitudes and views 
on GPO’s transformation. 

Identify cultural features of transforming organizations. Because a 
change of culture is at the heart of a successful transformation, it is 
important for leadership to gain a better understanding of the 
organization’s beliefs and values prior to, or early in, the transformation 
process. By listening to GPO employees and customers, GPO management 
determined that its culture was not sufficiently customer focused in dealing 
with agencies’ printing needs. Instead, GPO relied on the requirement in 
Title 44 that federal agencies use GPO for their printing needs and made 
little effort to develop customer relationships and anticipate the needs of 
its customers. As mentioned earlier, to foster a more customer-oriented 
culture, GPO has created new positions, national account managers, 
responsible for developing relationships with customer agencies. The 
national account managers’ role is to develop relationships with agency 
customers and provide them with information about the products and 
services that GPO can offer to meet their information dissemination needs. 

Similarly, GPO’s former CHCO spoke with GPO employees about their 
views of the Human Capital Office and identified features of the office’s 
culture that he is trying to change. The recent restructing of the Human 
Capital Office is aimed at creating a culture that is more customer focused, 
breaking down organizational barriers, and enhancing internal and external 
communication. For example, the Human Capital Office has been 


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GAO-04-830 GPO Transformation 





reorganized into teams dedicated to support GPO’s operating units. These 
teams will be able to address the full range of human resources activities, 
from hiring to retirement, as well as worker safety issues. According to 
GPO, physically locating the human capital team members with the 
business unit staff ensures that the operating units’ human resources needs 
are more easily met, improves communication between the units and the 
Human Capital Office, and allows for faster decision making. 

Attract and retain key talent. Success is more likely when the best 
people are selected for each position based on the competencies needed 
for the new organization. To help ensure that GPO retained key talent 
needed for GPO’s transformation, the Public Printer appointed experienced 
GPO employees to fill the top management positions of Superintendent of 
Documents, Managing Director of Customer Services, and Managing 
Director of Plant Operations. (One of the three employees has over 40 
years of experience at GPO.) According to the Public Printer, each of these 
individuals is committed to helping GPO transform and successfully meet 
the needs and demands of GPO's customers in the 21st century. In addition, 
these appointments ensured that a vast amount of institutional knowledge 
remained at GPO during the transformation and were meant to give other 
current GPO employees a clear message that, while GPO is transforming 
and changing the way it does business, there is a place for current GPO 
employees at all levels of the new organization. 

To ensure that GPO attracts the people it needs to successfully transform 
and to obtain the next generation of technical skills needed to prepare GPO 
for the challenges of the 21st century, the Public Printer has increased the 
recruitment of outstanding college scholars. GPO has implemented a 
recruiting initiative at universities and colleges that emphasize fields of 
study that would benefit GPO in meeting its current and emerging needs. 
For example, the initiative will target graduates in printing and graphic 
communication; electrical, mechanical, and chemical engineering; and 
business administration. 

In response to a request from the General Counsel of GPO, we recently 
provided an advance decision that GPO may use appropriated funds to 
provide recruitment and relocation payments and retention allowances to 
certain GPO employees, but suggested that it consult with the Joint 
Committee on Printing before doing so. 23 GPO is exploring these and other 


^B-SOISS? (Apr. 28, 2004). 


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GAO-04-830 GPO Transformation 





strategies to enhance its ability to recruit and retain top talent with needed 
skills and knowledge. We have reported that agencies have successfully 
used human capital flexibilities, such as recruitment and retention 
allowances, as important human capital strategies to assist in reaching 
program goals. 24 

Establish an organizationwide knowledge and skills inventory. A 

knowledge and skills inventory can help a transforming organization 
identify the skills and competencies of the existing workforce that can help 
the organization adapt to its new mission. In addition, a transforming 
organization needs to define the critical skills and competencies that it will 
require in the future to meet its strategic program goals and identify how it 
will obtain these requirements, including those that it will need to acquire, 
develop, and retain (including full- and part-time federal staff and 
contractors) to meet future needs. 25 

GPO’s Human Capital Office is planning to complete a knowledge and skills 
inventory to identify the skills and competencies of the existing workforce. 
In a memorandum to all GPO employees, the former CHCO explained that 
the Workforce Development Department will undertake a comprehensive 
skills assessment involving all employees to strategically determine how 
GPO will need to retrain the workforce as the transformation proceeds. 
The skills assessment will include a number of measurement tools and 
methods, including skills tests, electronic and paper-based surveys, 
interviews, focus groups, and observations of work. The knowledge and 
skills inventory could help GPO as it reorganizes and shifts focus to new 
missions and competencies. 

Knowledge and skills inventories have been used by agencies to identify 
related training needs. We have reported that agencies have used a variety 
of approaches in assessing skills and competencies to identify training 
needs. For example, agencies used workforce planning models; assessed 
the workforce in view of organizational, occupational, and unit-based 


^U.S. General Accounting Office, Human Capital: Effective Use of Flexibilities Can Assist 

Agencies in Managing Their Workforces, GAO-03-2 (Washington, D.C.: Dec. 6, 2002). 

26 U.S. General Accounting Office, Human Capital: Key Principles for Effective Strategic 
Workforce Planning, GAO-04-39 (Washington, D.C.: Dec. 11, 2003). 


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GAO-04-830 GPO Transformation 





Recommended Next Steps 


competency standards; and evaluated job performance appraisals and 
information from individual development plans. 26 

While GPO completes the skills assessment of its current employees, it 
plans to also complete a systematic identification of new skills and 
competencies that it will need in the future. When GPO leadership 
completes both of these efforts, it will be able to pinpoint skills gaps within 
its workforce and develop strategies to ensure that GPO retains, develops, 
and acquires employees with these skills. These efforts can serve to help 
employees understand how they can enhance their skills to contribute to 
GPO’s future and are consistent with the recommendation to strengthen 
training made by the panel of printing and information dissemination 
experts that we convened. 

The skills inventory is an important step to ensure that GPO employs 
people with the skills necessary for its future mission. However, until GPO 
leadership finalizes the mission and goals of the transformed GPO, it 
cannot determine fully the skills needed to achieve current and future 
programmatic results or develop strategies focused on those skills. 

The Public Printer should develop a documented transformation plan that 

• outlines his goals for the transformation and when he expects to meet 
these goals and 

• identifies critical phases and essential activities that need to be 
completed. 

The CHCO should 

• determine, based on the results of the upcoming employee survey, 
whether any changes are needed to the transformation strategies and 

• ensure that the development of human capital strategies focuses on the 
skills gaps identified by GPO leadership. 


^U.S. General Accounting Office, Human Capital: Selected Agencies' Experiences and 
Lessons Learned in Designing Training and Development Programs, GAO-04-291 
(Washington, D.C.: Jan. 30, 2004). 


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GAO-04-830 GPO Transformation 





GPO’s Management Team Is 
in Place, but Attention to 
Daily Transformational 
Activities Could Be 
Strengthened 


Dedicating a strong and stable implementation team that will be 
responsible for the transformation's day-to-day management is important 
to ensuring that it receives the focused, full-time attention needed to be 
sustained and successful. Specifically, the implementation team is 
important to ensuring that various change initiatives are sequenced and 
implemented in a coherent and integrated way. Top leadership must vest 
the team with the necessary authority and resources to set priorities, make 
timely decisions, and move quickly to implement top leadership’s decisions 
about the transformation. 


Key transformation practice Implementation steps 

Dedicate an implementation team • Establish networks to support implementation team, 
to manage the transformation • Select high-performing team members. 
process. _ 


The Public Printer has put in place a senior management team, referred to 
as the management council, which can help bring GPO into the future. This 
council is composed of the COO, CFO, CHCO, CIO, Superintendent of 
Documents, Managing Director of Plant Operations, Managing Director of 
Customer Services, the Chief of Staff, the Deputy Chief of Staff, General 
Counsel, and the Inspector General. According to GPO officials, the 
management council does not have regularly scheduled meetings and only 
meets when convened by the Public Printer. About 80 percent of the 
management council’s time is devoted to long-term, transformational 
activities, while 20 percent of the time is devoted to addressing day-to-day 
operational issues. 

A second management team, referred to as the operations council, is 
composed of the CFO, CHCO, CIO, Superintendent of Documents, 
Managing Director of Plant Operations, and Managing Director of 
Customer Services; this council meets weekly with the COO. According to 
GPO officials, this council spends about 80 percent of its time dealing with 
day-to-day operations and 20 percent with transformation issues. Although 
the operations council occasionally discusses transformation-related 
issues, its meetings are not structured around specific transformation tasks 
or decisions required to make progress on the transformation. Instead, the 
meetings give each member of the council an opportunity to provide an 
update on issues affecting his or her unit’s operations, improve 
communication among GPO’s top managers, and ensure that crosscutting 
issues in day-to-day operations receive management attention. 


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GAO-04-830 GPO Transformation 







Recommended Next Steps 

GPO leadership recognizes the importance of establishing networks to 
support its transformation efforts, and it is creating a network of task 
forces to lead the development of various transformational strategies. For 
example, GPO created a task force to focus on “revenue enhancements and 
new investments.” This task force will be chaired by the CFO, and will 
include members of other GPO business units, such as New Business 
Development and Information Technology and Systems. The Public Printer 
directed the chairpersons of the task teams to select task force members 
and develop the strategies that will be the basis for GPO’s strategic plan by 
June 17, 2004. Our work on transformations has found that establishing 
networks, including a senior executive council, functional teams, or 
crosscutting teams, can help the implementation team conduct the day-to- 
day activities of the transformation and help ensure that efforts are 
coordinated and integrated. 

GPO leaders have acknowledged that creating the support capacity and 
accountability for daily transformation activities could help ensure that the 
transformation continues to make progress. These leaders said that 
responsibilities for day-to-day transformation activities could include 
setting priorities, proposing milestones, tracking progress, providing 
analysis to support decision making, and coordinating among teams. 

The Public Printer should establish a transformation team, or augment the 
management council, to address the day-to-day management of GPO’s 
transformation effort. The team should include high-performing employees 
who have knowledge and competencies that could help GPO plan its 
future. Establishing such a team could create the focus needed to stimulate 
and sustain GPO’s transformation efforts. 

GPO Is Planning Changes to 
Strengthen Its Performance 
Management System 

A performance management system can help manage and direct the 
transformation process and serves as the basis for setting expectations for 
individuals’ roles in the transformation. To be successful, transformation 
efforts must have leaders, managers, and employees who have the 
individual competencies to integrate and create synergy among the 
multiple operating units involved in the transformation effort. Individual 
performance and contributions are evaluated on competencies such as 
change management, cultural sensitivity, teamwork and collaboration, and 
information sharing. Leaders, managers, and employees who demonstrate 


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GAO-04-830 GPO TVansformation 





these competencies are rewarded for their success in contributing to the 
achievement of the transformation process. 


Key transformation practice 

Implementation step 

Use the performance management 
system to define responsibility and 
assure accountability for change. 

Adopt leading practices to implement effective 
performance management systems with adequate 
safeguards . 3 


a For information on key practices that we have identified for implementing effective performance 
management systems, see U.S. General Accounting Office, Results-Oriented Cultures: Creating a 
Clear Linkage between Individual Performance and Organizational Success, GAO-03-488 
(Washington, D.C.: Mar. 14, 2003). 

GPO plans to implement a new performance management system for its 
executives and will later work on changes for employees at other 
organizational levels. As part of this effort, GPO is exploring the use of 
competencies to provide a fuller assessment of performance. For example, 
GPO has developed performance agreements for its senior managers based 
upon the executive core qualifications adopted by the Office of Personnel 
Management for senior executives and included responsibilities such as 
leading strategic change. Each responsibility will be linked to three or four 
competencies. Additionally, the draft performance agreements include 
interim goals that GPO developed for its operating units and other elements 
that we have identified as important for executive performance. 27 They 
include, for example, specific levels of performance that GPO plans to link 
to strategic objectives to help senior executives see how they directly 
contribute to organizational results. 

Until GPO’s strategic plan is completed, however, GPO will not be able to 
fully align individual performance competencies or expectations with 
organizational goals. The completion of the strategic plan will provide 
human capital officials with the information needed to develop 
competencies and expectations for employees that have a direct link to 
GPO’s goals, providing employees with the information they need to 
understand how their performance leads to organizational success. 

As part of GPO’s effort to strengthen performance management, GPO plans 
to pilot a new system that, beginning with its senior executives, will more 


27 U.S. General Accounting Office, Human Capital: Senior Executive Performance 

Management Can Be Significantly Strengthened to Achieve Results, GAO-04-614 
(Washington, D.C.: May 26, 2004). 


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GAO-04-830 GPO Transformation 







Recommended Next Steps 


GPO Has Improved 
Communication, but Can 
Better Address Employee 
Needs 


closely link an individual’s pay with his or her performance. Linking pay to 
performance is a key practice for effective performance management. We 
have reported that efforts to link pay to performance require adequate 
safeguards, 28 including reasonable transparency and appropriate 
accountability mechanisms, to ensure the fair, effective, and 
nondiscriminatory implementation of the system. The Human Resources 
Office has begun developing a pay-for-performance program that will use 
measures of effectiveness that directly link individual performance with 
organizational goals and objectives. The newly established Workforce 
Development, Education and Training Office will be required to develop 
and deliver training to supervisors and managers on performance 
management. The objective is to ensure that supervisors and managers are 
equipped with the necessary skills to effectively manage their employees, 
help drive change efforts, and achieve results. 

The CHCO should continue developing a performance management system 
for all GPO employees that creates a line of sight by linking employee 
performance with agency goals. The CHCO should ensure that GPO’s new 
performance management system has adequate safeguards, including 
reasonable transparency and appropriate accountability mechanisms, to 
ensure the fair, effective, and nondiscriminatory implementation of the 
system. 


Communication, an important management control, is most effective when 
done early, clearly, and often, and when it is downward, upward, and 
lateral. Successful organizations have comprehensive communication 
strategies that reach out to employees, customers, and stakeholders and 
seek to genuinely engage them in the transformation process. 


Key implementation practice Implementation steps 

Establish a communication • Communicate early and often to build trust, 

strategy to create shared • Ensure consistency of message, 

expectations and report related • Encourage two-way communication, 
progress. • Provide information to meet specific needs of 

employees. 


“GAO-OS^. 


Page 41 


GAO-04-830 GPO Transformation 








The Public Printer communicated his intention to transform GPO early and 
often and to various audiences. For example, in his confirmation hearing in 
October 2002, the Public Printer told Congress that GPO “must step back 
and take a new look at the changing and emerging information needs of its 
customers and develop a deeper understanding of its true strengths so that 
it can determine how best to build a new business model.” Then again, just 
8 days after the Public Printer took office, he publicly stated his intention 
to transform GPO. In his communications with employees, the Public 
Printer has also frequently expressed his intention to transform GPO. For 
example, GPO’s biweekly management newsletter, the GPO Link, often 
contains articles about GPO’s transformation. Transforming organizations 
have found that communicating information early and often helps to build 
an understanding of the purpose of the planned changes and builds trust 
among employees and stakeholders. 

GPO leadership has communicated a consistent message about the 
transformation to employees, customers, and other stakeholders through 
such methods as sponsoring conferences, attending customers’ meetings, 
and speaking with relevant trade magazines. For example, in 
correspondence with the Congress, employees, and the library community, 
the Public Printer and other senior managers have used similar terms and 
concepts when discussing GPO’s transformation. This consistency is 
important in ensuring that GPO’s employees, customers, and other 
stakeholders understand the current environment under which GPO 
operates. A message to employees and others affected by a transformation 
that is consistent in tone and content can alleviate the uncertainties 
generated during the unsettled times of large-scale change management 
initiatives. 

GPO leadership has encouraged two-way communication by instituting 
methods for employees and others to provide feedback and ask questions. 
For example, GPO’s intranet site has a section called “Ask the Public 
Printer.” On the site, the Public Printer fields questions on issues ranging 
from training opportunities, to building renovation issues, to contingency 
planning. In addition, the Public Printer holds periodic town hall meetings 
that include time for employees in attendance to ask him questions in 
person. In addition, stakeholders have been asked to communicate with 
GPO leaders. For example, on January 22, 2004, the Depository Library 


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GAO-04-830 GPO Transformation 




Council 29 provided GPO with advice on topics that the Public Printer 
identified as important to the future of GPO. The Public Printer expects to 
use feedback from stakeholders such as the Depository Library Council as 
GPO develops its strategic plan. Two-way communication is central to 
forming the effective internal and external partnerships that are vital to the 
success of any organization. 

GPO leadership has also made significant efforts to improve 
communication between management and employees. For example, GPO 
established the Employee Communications Office, which was developed 
with the vision “to have the best informed workforce in the U.S. 
Government by over-communicating organizational clarity and the mission 
and vision of the new GPO.” An important initiative undertaken by the 
Employee Communications Office is the development of GPO Link, a 
biweekly newsletter that reports on activities of GPO’s top managers. 

Despite these efforts, because GPO’s future mission and strategies have not 
yet been decided, the Public Printer has been unable to communicate the 
nature of the change that GPO needs to make in a way that addresses the 
specific needs of employees. During a communications focus group GPO 
held in October 2003, employees stated that recent efforts to improve 
communication were positive, but failed to provide the specific 
information needed to alleviate job concerns. These concerns were also 
voiced during town hall meetings led by the Public Printer in January 2004 
and were consistent with concerns raised by union representatives in their 
discussions with us about GPO’s transformation. Employees have indicated 
they are unsure about their future in the new GPO, and are seeking specific 
information on the skills they will need to remain useful to GPO. 
Communicating with employees about their specific concerns can help 
them understand how they might be affected and how their responsibilities 
might change with the new organization. 

GPO managers, union leaders, and employees have indicated that 
employees are unsure of their role in GPO’s transformation. Union leaders 
told us that much of the communication has been rhetoric with insufficient 
detail regarding how the transformation will affect employees. For 
example, the Public Printer has stated that the transformation will bring 
GPO into the 21st century, but the specifics of what jobs might be lost or 


29 The Depository Library Council is an organization established to provide advice on policy 
matters dealing with the Depository Library Program. 


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GAO-04-830 GPO Transformation 





changed have not been discussed because GPO is developing its mission 
and strategic plan. 

Recommended Next Steps The Public Printer can augment GPO’s communication about the 

transformation to include additional information that employees can use to 
understand their role in building the GPO of the 21st century. As GPO’s 
strategic planning effort moves forward, communication with employees 
should include topics such as GPO’s new mission, strategic goals, and in 
particular, employee concerns about their role in the new environment. As 
key decisions are made, communication should address how GPO’s 
transformation will affect employees so that they understand how their 
jobs may be affected, what their rights and protections might be, and how 
their responsibilities might change. 


GPO Can Expand the 
Involvement of Employees 
in the Transformation 


Employee involvement strengthens the transformation process by 
including frontline perspectives and experiences. Further, employee 
involvement helps to create the opportunity to establish new networks and 
break down existing organizational silos, increase employees’ 
understanding and acceptance of organizational goals and objectives, and 
gain ownership for new policies and procedures. 


Key transformation practice Implementation steps 

Involve employees to obtain their • Use employee teams. 

ideas and gain their ownership for • Involve employees in planning and sharing 

the transformation. performance information. 

• Incorporate employee feedback into new policies 
and procedures. 

• Delegate authority to appropriate organizational 
levels. 


The former and Acting CHCO, CIO, CFO, and Managing Director of 
Customer Services told us that they are adopting team-based approaches 
for accomplishing their units’ goals, which includes improved customer 
service. For example, GPO combined the former procurement division with 
the customer services division to create teams of employees who have a 
range of skills to address customer needs. Previously, GPO’s customers 
were shuffled between these two divisions, neither of which was clearly 
accountable for addressing the customers’ needs. A GPO official explained 
that by changing to a team approach, where a group of about five 
employees is responsible for all work with a customer, accountability for 
meeting the needs of that customer is clear and may lead to improved 


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GAO-04-830 GPO Transformation 







service. A teams-based approach to operations can create an environment 
characterized by open communication, enhanced flexibility in meeting job 
demands, and a sense of shared responsibility for accomplishing 
organization goals and objectives. 

GPO units can expand the involvement of employees and use their 
feedback in planning and sharing performance information, which can help 
employees accept and understand the goals of their units and their role in 
achieving them. For example, GPO officials told us that the CFO has shared 
goals for his division with his managers, who have, in turn, shared the goals 
with their employees. Therefore, all employees under the CFO know the 
goals of the division and how their work and performance helps realize the 
goals. However, not all division managers have shared goals with their 
employees. The practice of involving employees in planning and sharing 
performance information can be transferred to other GPO units as GPO’s 
transformation progresses. 

Major transformations, like GPO’s, often include redesigning work 
processes, changing work rules, or making other changes that are of 
particular concern to employees. GPO has made or plans to make changes 
to many of its policies and procedures. As we mentioned earlier, for 
example, GPO is planning to pilot test a new pay-for-performance system, 
beginning with its senior managers. We have reported on other agencies’ 
attempts to involve employees and unions in developing aspects of its 
personnel systems. 30 For example, at the Department of Homeland 
Security, employees and union representatives played a role in shaping the 
design of a proposed personnel system. The design process attempted to 
include employees by creating multiple opportunities for employees to 
provide feedback. 

GPO has taken some actions to delegate authority to employees. Soon after 
the new Public Printer took office, GPO instituted a time-off awards 
program, which provides supervisors with a means to recognize employees 
for their productivity, creativity, dedication, and outstanding contributions 
to the mission of GPO. Before GPO created this award program, 
supervisors did not have the authority to recognize and reward outstanding 
performance. In a transformation, employees are more likely to support 


^.S. General Accounting Office, Human Capital: DHS Personnel System Design Effort 
Provides for Collaboration and Employee Participation, GAO-03-1099 (Washington, D.C.: 
Sept. 30, 2003). 


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GAO-04-830 GPO Transformation 





Recommended Next Steps 


changes when they have the necessary authority and flexibility—along with 
commensurate accountability and incentives—to advance the 
organization’s goals and improve performance. 

Delegating certain personnel authorities is important for managers and 
supervisors who know the most about an organization’s programs and can 
use those authorities to make those programs work. The former Deputy 
Public Printer told us that decision making on many day-to-day matters was 
centralized within his office. For example, his approval was required for all 
training requests from GPO employees. The current Public Printer has 
delegated authority to approve training to lower level managers who are 
more familiar with the employees’ work requirements and, therefore, have 
a better understanding of the training individual employees need to 
improve their performance. 

We have reported that agency managers and employees have important 
roles in the success of training and development activities. 31 Managers are 
responsible not only for reinforcing new competencies, skills, and 
behaviors but also for removing barriers to help employees implement 
learned behaviors on the job. Furthermore, if managers understand and 
support the objectives of training and development efforts, they can 
provide opportunities for employees to successfully use new skills and 
competencies and can model the behavior they expect to see in their 
employees. Employees also need to understand the goals of agencies’ 
training and development efforts and accept responsibility for developing 
their competencies and careers, as well as for improving their 
organizations’ performance. 

GPO leadership should involve employees more in planning and decision 
making for the future, allowing employees to gain ownership of the 
transformation. For example, the CHCO should incorporate employee 
feedback as part of the process for developing GPO’s pay for performance 
system and in training and development activities. 


31 U.S. General Accounting Office, Human Capital: A Guide for Assessing Strategic 

Training and Development Efforts in the Federal Government, GAO-04-546G (Washington, 
D.C.: March 2004). 


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GAO-04-830 GPO Transformation 





World-Class 
Management Practices 
Can Strengthen GPO’s 
Transformation 


Successful change efforts start with a vision of radically improved 
performance and the relentless pursuit of that vision. Leaders of successful 
transformations seek to implement best practices in systems and processes 
and guard against automatically retaining the approaches used in the past. 
Instead of developing optimal systems and processes, transforming 
organizations risk devoting attention to attempting to mend less than fully 
efficient and effective systems and processes merely because they are 
already in place. Over the longer term, leaders of successful mergers and 
acquisitions, like leaders of successful organizations generally, seek to 
learn from best practices and create a set of systems and processes that are 
tailored to the specific needs and circumstances of the transforming 
organization. 


GPO leadership has articulated a vision to transform GPO into a world- 
class organization and has taken some initial steps toward this objective, 
most notably with respect to human capital management. However, 
because significant change efforts are difficult and take a long time, 
continued leadership attention is needed. The commitment of the Public 
Printer, the appointment of a COO, and other key leadership selections are 
positive steps in this regard. In particular, we have reported that COOs can 
be part of a broader effort to elevate attention to management and 
transformation issues, integrate various key management and 
transformation efforts, and institutionalize accountability for addressing 
management issues leading a transformation. By their very nature, the 
problems and challenges facing agencies are crosscutting and thus require 
coordinated and integrated solutions. However, the risk is that 
management responsibilities (including, but not limited to, information 
technology, financial management, and human capital) will be “stovepiped” 
and thus will not be carried out in a comprehensive, ongoing, and 
integrated manner. 32 


GPO Has Taken Numerous 
Actions to Strengthen 
Human Capital Management 


Having effective human capital policies and procedures is a critical factor 
in an organization’s management control environment. GPO’s efforts to 
strengthen human capital management demonstrate a commitment to 
these management controls. 


^U.S. General Accounting Office, Human Capital: Observations on Agencies' 
Implementation of the Chief Human Capital Officers Act, GAO-04-800T (Washington, D.C.: 
May 18, 2004). 


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GAO-04-830 GPO Transformation 








In October 2003, we reported on how GPO leadership could advance its 
transformation through strategic human capital management and made 
numerous recommendations to GPO leadership that were based on leading 
practices in strategic human capital management. 33 Taken as a whole, these 
recommendations represent a framework for radically improving GPO’s 
human capital practices. GPO’s Human Capital Office is using our October 
2003 report 34 as GPO’s roadmap for transforming its human capital 
management and is actively implementing the recommendations we made. 
Much of GPO’s progress in improving its human capital management has 
been described previously in this report. Our recommendations focus on 
four interrelated areas: 

• communicating the role of managers in GPO’s transformation, 

• strengthening the role of the human resources office, 

• developing a strategic workforce plan to ensure GPO has the skills and 
knowledge it needs for the future, and 

• using a strategic performance management system to drive change. 

GPO has made clear progress toward adopting the leading practices that 
we described in our October report, and has shown a continuing interest in 
improving GPO’s Human Capital Office by identifying management best 
practices used by other organizations. The experience of transforming 
organizations, including GAO, has shown that transformation must be 
based on the best, most up-to-date management practices to reach its full 
potential. 35 Consistent with this practice, GPO leadership requested our 
assistance in identifying and describing approaches and strategies used by 
other organizations to restructure their workforces. 

In response to this request, on January 20, 2004, we briefed GPO leadership 
on the workforce restructuring efforts of the Federal Deposit Insurance 


^ 0 - 04 - 85 . 

^U.S. General Accounting Office, Government Printing Office: Advancing GPO’s 
Transformation Effort through Strategic Human Capital Management, GAO-04-85 
(Washington, D.C.: Oct. 20, 2003). 

“U.S. General Accounting Office, Results-Oriented Government: Shaping the Government 
to Meet 21 st Century Challenges, GAO-03-1168T (Washington, D.C.: Sept. 17, 2003). 


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GAO-04-830 GPO TVansformation 





Corporation, GAO, and the Treasury’s Financial Management Service. The 
briefing presented the lessons that these agencies learned from their 
workforce restructuring efforts, with particular emphasis on efforts to 
assist employees in finding other employment. The approaches and 
strategies we highlighted were retraining, outplacement assistance, 
workforce restructuring planning, communication, and employee and 
union involvement. Our briefing contained specific examples, related 
agency materials, and contacts that could provide further information and 
assistance to GPO. 


GPO’s CIO Organization Has 
Begun to Transform 


However, improved information technology (IT) systems such as those 
contained in the Public Printer’s vision are not simple to develop or 
acquire. Through our research of best IT management practices and our 
evaluations of agency IT management performance, we have identified a 
set of essential and complementary management disciplines that provide a 
sound foundation for IT management. These include 

• enterprise architecture, 

• IT investment management, 

• software/system development and acquisition, 

• information security, and 

• IT human capital. 

GPO’s CIO understands that his IT organization, like all of GPO, will have to 
transform to meet current and future needs. More specifically, he 
acknowledges the need to establish IT management policies, procedures, 


The Public Printer has stated that the new vision of GPO will be an agency 
whose primary mission will be to capture digitally, organize, maintain, 
authenticate, distribute, and provide permanent public access to the 
information products and services of the federal government. To execute 
this vision, he states that GPO must deploy the technology needed by 
federal agencies and the public to gather and produce digital documents in 
a uniformly structured database in order to authenticate documents 
disseminated over the Internet and to preserve the information for 
permanent public access. 


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GAO-04-830 GPO Transformation 





and practices in the key areas listed above. The CIO has taken steps, or 
plans to take steps, to begin improving IT in each of these areas. 


Enterprise Architecture 


An enterprise architecture is to an organization’s operations and systems as 
a set of blueprints is to a building. That is, building blueprints provide those 
who own, construct, and maintain the building with a clear and 
understandable picture of the building’s uses, features, functions, and 
supporting systems, including relevant building standards. Further, the 
building blueprints capture the relationships among building components 
and govern the construction process. Enterprise architectures do nothing 
less, providing to people at all organizational levels an explicit, common, 
and meaningful structural frame of reference that allows an agency to 
understand (1) what the enterprise does; (2) when, where, how, and why it 
does it; and (3) what it uses to do it. 

An enterprise architecture provides a clear and comprehensive picture of 
the structure of an entity, whether an organization or a functional or 
mission area. This picture consists of snapshots of both the enterprise’s 
current or “as-is” technical and operational environments, its target or “to- 
be” technical and operational environments, and a capital investment 
roadmap for transitioning from the current environment to the target 
environment. An enterprise architecture is an essential tool for effectively 
and efficiently engineering business practices, implementing and evolving 
supporting systems, and transforming an organization. Managed properly, it 
can clarify and help optimize the interdependencies and relationships 
among an organization’s business operations and the underlying IT 
infrastructure and applications that support these operations. Employed in 
concert with other important management controls, such as portfolio- 
based capital planning and investment control processes, architectures can 
greatly increase the chances that organizations’ operational and IT 
environments will be configured to optimize mission performance. Oin¬ 
experience with federal agencies has shown that investing in IT without 
defining these investments in the context of an enterprise architecture 
often results in systems that are duplicative, not well integrated, and 
unnecessarily costly to maintain and interface. The development of an 
enterprise architecture is an essential part of a successful organizational 
transformation. 

Our research has shown that an organization should ensure that adequate 
resources are provided for developing the architecture and that 
responsibility for directing, overseeing, and approving enterprise 
architecture development is assigned to a committee or group with 


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GAO-04-830 GPO Transformation 




Investment Management 


representation from across the organization. Establishing this 
organizationwide responsibility and accountability is important in 
demonstrating the organization’s commitment to building the management 
foundation and obtaining support for the development and use of the 
enterprise architecture from across the organization. This group should 
include executive-level representatives from each line of business, and 
these representatives should have the authority to commit resources to 
architecture-related efforts and enforce decisions within their respective 
organizational units. Our research shows that enterprise architecture 
efforts also benefit from developing an architecture program management 
plan that specifies how and when the architecture is to be developed, 
including a detailed work breakdown structure, resource estimates (e.g., 
funding, staffing, and training), performance measures, and management 
controls for developing and maintaining the architecture. The plan 
demonstrates the organizations’ commitment to managing enterprise 
architecture development and maintenance. 

Currently, GPO does not have such an enterprise architecture. Its CIO 
agrees that an enterprise architecture is an important tool and is working to 
develop one for GPO. As the first step towards developing an enterprise 
architecture, the CIO organization is in the process of documenting GPO’s 
current business processes and supporting IT architecture (the “as-is” 
enterprise architecture). In doing this work, the agency is focusing first on 
those business items of greater interest to two sets of critical customers— 
the Congress and users of the Federal Register. The CIO has also hired a 
manager to lead this effort who has significant experience in the 
development and institutionalization of enterprise architecture and related 
processes. 

In concert with a properly developed and institutionalized enterprise 
architecture, an effective and efficient IT investment management process 
is key to a successful transformation effort. An effective and efficient IT 
investment process allows agencies to maximize the value of their IT 
investments and to minimize the risks of IT acquisitions. This is critically 
important because IT projects, while having the capability to significantly 
improve an organization’s performance, can become very costly, risky, and 
unproductive. Federal agency IT projects too frequently incur cost 
overruns and schedule slippages while contributing little to mission-related 
outcomes. 

GPO’s transformation may require significant investment in IT and related 
efforts. Therefore, it is essential that GPO effectively manage such 


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GAO-04-830 GPO Transformation 





investments. We have developed a guide to effective IT investment 
management based on a select/control/evaluate model: 

• Select. The organization (1) identifies and analyzes each project’s risks 
and returns before committing significant funds to any project and 
(2) selects those IT projects that best support its mission needs. This 
process should be repeated each time, reselecting even ongoing 
investments, as described below. 

• Control. The organization ensures that, as projects develop and 
investment expenditures continue, the project continues to meet 
mission needs at the expected levels of cost and risk. If the project is not 
meeting expectations or if problems have arisen, steps are quickly taken 
to address the deficiencies. If mission needs have changed, the 
organization can adjust its objectives for the project and appropriately 
modify expected project outcomes. 

• Evaluate. The organization compares actual versus expected outcomes 
after a project is fully implemented. This is done to (1) assess the 
project’s impact on mission performance, (2) identify any changes or 
modifications to the project that may be needed, and (3) revise the 
investment management process based on lessons learned. 

To oversee the investment management process, an investment review 
board is established, made up of managers, that is responsible and 
accountable for selecting and monitoring projects based on the agency’s 
investment management criteria. The IT investment board is a key 
component in the investment management process. An organizationwide 
investment board has oversight responsibilities for developing and 
maintaining the organization’s documented IT investment process. It plays 
a key role in establishing an appropriate IT investment management 
structure and processes for selecting, controlling, and evaluating IT 
investments. The organization may choose to make this board the same 
board that provides executive guidance and support for the enterprise 
architecture. Such overlap of responsibilities may enhance the ability of the 
board to ensure that investment decisions are consistent with the 
architecture and that it reflects the needs of the organization. 

This model allows an organization to effectively choose, monitor, and 
evaluate projects. GPO intends to complete a major transformation of itself 
within a few years, with most of its transformation based on improved IT 


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GAO-04-830 GPO IVansformation 





capabilities. For an organization like GPO, in the midst of transformation, 
effective oversight of its IT investments is essential. 


Software/System Development 
and Acquisition Capability 


IT Security 


Currently, GPO does not have an IT investment management process. 
GPO’s CIO said that his review of projects at GPO indicated that in the past, 
for example, most projects were selected without documentation such as a 
cost-benefit analysis, economic justification, alternatives analysis, and fully 
validated requirements. The CIO’s long-term goal is to implement a 
standard investment management process requiring such items. As a 
beginning, he is working on a list of required documents that each new 
information technology proposal will have to provide before it can be 
approved by GPO management. He is holding workshops aimed at 
introducing the business managers to this documentation and providing 
training in the meaning and use of these documents in support of project 
initiation. 

Underlying enterprise architecture management and investment 
management is the ability to effectively and efficiently develop and acquire 
systems and software. GPO’s CIO is aware that his organization’s 
development and acquisition capabilities could be improved and plans to 
take steps to achieve these improvements. 

The CIO has tasked one of his new managers to begin improving key 
process areas for software development and acquisition. On the basis of 
this manager’s recommendation, GPO has selected the software acquisition 
models of the Institute of Electrical and Electronics Engineers (IEEE) as 
its standard for this process. The IEEE defines a nine-step process for the 
acquisition of software, which GPO plans to implement for future software 
acquisitions. The CIO also plans to implement a process for software 
development, but has not determined which model to use. 

Dramatic increases in computer interconnectivity, especially in the use of 
the Internet, are revolutionizing the way our government, our nation, and 
much of the world communicate and do business. The benefits from this 
have been enormous. However, this widespread interconnectivity poses 
significant risks to computer systems and, more importantly, to the critical 
operations and infrastructures they support, such as telecommunications, 
power distribution, and national defense. The same factors that benefit 
operations—speed and accessibility—if not properly controlled, also make 
it possible for individuals and organizations to inexpensively interfere with 
or eavesdrop on these operations from remote locations for purposes of 
fraud or sabotage, or for other malicious or mischievous purposes. In 


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GAO-04-830 GPO Transformation 





addition, natural disasters and inadvertent errors by authorized computer 
users can have devastating consequences if information resources are 
poorly protected. 

As GPO transforms, its information resources will become increasingly 
dependent upon correctly functioning IT. Whereas in the past, GPO needed 
only to have several paper copies of each document available, greater 
security measures will be required as GPO implements a database for 
permanent public access to all federal government information. 

GPO’s current information security could be improved. In fiscal year 2003, 
an independent audit of GPO’s internal controls, done as part of a review of 
GPO’s financial statements, 36 found that GPO did not have in place an 
effective security management structure that provides a framework and 
continuing cycle of activity for managing risk, developing security policies, 
and monitoring the accuracy of GPO’s computer security controls. Among 
the specific findings: 

• Security-related policies and procedures had not been documented or 
had not been kept current and did not reflect GPO’s current 
environment. These policies also provided no guidance for developing 
risk assessment programs. 

• Local network administrators did not have guidance in developing 
formal procedures to perform network administration duties, such as 
creating and maintaining user accounts, periodically reviewing user 
accounts, and reviewing audit logs. 

• GPO had not established a comprehensive business continuity and 
disaster recovery plan for its mainframe, client-server platforms, and 
major software applications. 

The CIO has ongoing projects aimed at addressing each of the issues 
outlined by the audit organization. First, he is in the process of issuing new 
security-related policies and procedures reflecting GPO’s current 
environment. The CIO’s security organization is also working on policies 
and procedures and guidance for local network administrators. Finally, 
GPO is negotiating with other legislative branch agencies to use their 


x GPO Annual Report, Fiscal Year 2003, Independent Auditor's Report (Washington, D.C.: 

2003). 


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GAO-04-830 GPO Transformation 





IT Human Capital 


Recommended Next Steps 


backup computer facility and is developing a business continuity and 
disaster recovery plan for GPO’s platforms and major software 
applications. 

As mentioned earlier, the Public Printer has emphasized the importance of 
strategically managing GPO’s people in order to successfully transform the 
organization. The CIO, like other GPO managers, considers human capital a 
vital part of his organization’s operations as well as critical to the success 
of GPO’s transformation efforts. 

The CIO and his managers are reviewing the current human capital 
situation and taking interim steps to improve. At the same time, they are 
working with GPO’s human capital organization to develop a strategy to 
improve GPO’s human capital management capability for the long term. 
For example, the CIO has tasked each IT area manager to complete such a 
review of his or her staff and report the results to the CIO. While a few 
needed skill sets will be hired from the outside, the emphasis for the CIO 
organization in the near term will be on finding needed skills inside the 
organization and retraining individuals with related skills. The CIO is also 
providing training to his CIO staff on project management and related 
issues. 

Like efforts in other parts of GPO, the CIO’s actions to improve GPO’s IT 
capabilities are important first steps. However, much more needs to be 
done to establish an effective IT investment process, to establish an 
enterprise architecture, and to improve the agency’s system development 
and acquisition, security, and human capital capabilities. Therefore, we 
recommend that the Public Printer direct the GPO CIO to do the following. 

• Begin an effort to create and implement a comprehensive plan for the 
development of an enterprise architecture that addresses completion of 
GPO’s current or “as-is” architecture, development of a target or “to-be” 
architecture, and development of a capital investment plan for 
transitioning from the current to the target architecture. As part of the 
capital investment plan, designate an architecture review board of 
agency executives who are responsible and accountable for overseeing 
and approving architecture development and maintenance, and 
establish an enterprise architecture program management plan. 

• Begin an effort to develop and implement an investment management 
process by (1) developing guidance for the selection, control, and 
evaluation processes and then (2) establishing an investment review 


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GAO-04-830 GPO Transformation 





board responsible and accountable for endorsing the guidance, 
monitoring its implementation, and executing decisions on projects 
based on the guidance. 

• Develop and implement a comprehensive plan for software 
development and acquisition process improvement that specifies 
measurable goals and time frames, sets priorities for initiatives, 
estimates resource requirements (for training staff and funding), and 
defines a process improvement management structure. 

• Establish the appropriate security and business continuity policies, 
procedures, and systems to ensure that its information products are 
adequately protected. 

• Ensure that GPO’s Human Capital Office, in its efforts to develop and 
implement a human capital strategy, considers the special needs of IT 
human capital. 


Sound financial management practices that produce reliable and timely 
financial information for management decision making are a vital part of a 
strategic plan to achieve transformation. In recent testimony 37 the Public 
Printer acknowledged that GPO is in a precarious financial position with 
sustained significant financial losses over the past 5 years, which appear to 
be structural in nature. Such structural losses point out the clear need for 
transformation. In response to GPO’s financial condition, the Public Printer 
has taken positive, immediate steps to stem losses, cut costs, and curtail 
certain program activities. 

Given the importance of GPO’s business transformation, it is imperative 
that transformation efforts be clearly linked to financial management 
results and receive the sustained leadership needed to improve the 
economy, efficiency, and effectiveness of GPO’s business operations 
through its transformation plan. The transformation plan should provide a 
strategic-level “road map” from the current environment to the planned 
future environment, including a link to current cost-cutting and other 


37 Bruce R. James, Public Printer of the United States, Statement Before the Committee on 
House Administration U.S. House of Representatives “Transformation of the U.S. 
Government Printing Office to Meet the Demands of the 21 st Century” (Washington, D.C.: 
Apr. 28, 2004). 


Financial Management’s 
Role in Supporting 
Transformation 


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GAO-04-830 GPO Transformation 






financial improvement initiatives. In addition, management needs reliable 
and up-to-date information on progress, including financial results. 

As discussed in our executive guide on best practices in financial 
management, 38 dramatic changes over the past decade in the business 
environment have driven finance organizations to reevaluate their role. The 
role of financial management and reporting will be critical to managing the 
progress and impact of GPO’s transformation efforts. 

In the transformation environment, GPO will need to define a vision for its 
financial management organization such that it is a value-creating, 
customer-focused partner in business results in order to build a world-class 
finance organization and to help achieve GPO’s transformation goals. As 
reported and shown in figure 6, certain success factors, goals, and 
practices are instrumental in achieving financial management excellence. 


“U.S. General Accounting Office, Executive Guide: Creating Value Through World-class 
Financial Management, GAO/AIMD-OO-134 (Washington, D.C.: April 2000). 


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GAO-04-830 GPO Transformation 





Figure 6: Achieving Best Practices in Financial Management 



Vision: To be a value-creating, customer-focused partner in business results 


Success 

factors 


Practices 


• Leadership • Organization • Technology 

• Culture • Customer • Process 


> People 


Make financial 
management 
an entitywide 
prority. 


1. Build a 
foundation of 
control and 
accountability. 

2. Provide clear 
strong executive 
leadership. 

3. Use training 
to change the 
culture and 
engage line 
managers. 


Redefine the 
role of 
finance. 


4. Assess the 
finance 
organization's 
current role in 
meeting 
mission 
objectives. 

5. Maximize 
the efficiency 
of day-to-day 
accounting 
activities. 

6. Organize 
finance to 
add value. 


Provide 
meaningful 
information to 
decision 
makers. 


7. Develop 
systems that 
support the 
partnership 
between 
finance and 
operations. 

8. Reengineer 
processes in 
conjunction 
with new 
technology. 

9. Translate 
financial data 
into meaning¬ 
ful information. 


Build a team 
that delivers 
results. 


10. Develop a 
finance team 
with the right 
mix of skills 
and 

competencies 

11. Build a 
finance 
organization 
that attracts 
and retains 
talent. 


Source: GAO. 


We compared best practices that would be most applicable to GPO’s 
financial management operations and transformation efforts to many of the 
activities and goals planned by GPO. Overall, GPO and its CFO have taken 
many actions and have plans for efforts that are consistent with many best 
practices in financial management; however, additional emphasis is needed 
for other best practices that enhance GPO’s transformation and to ensure 
that planned efforts are fully supported. In addition, GPO’s strategic 
planning for transformation should include the actions, plans, and goals to 
be initiated by its CFO and its financial management team to ensure that 


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GAO-04-830 GPO TVansformation 





































GPO’s weakening financial position does not undermine its transformation 
goals. 

Making Financial 
Management an Entitywide 
Priority 

Our prior report observes that the chief executive should recognize the 
important role the finance organization plays in improving overall business 
performance and involve key business managers in financial management 
improvement initiatives. This is especially important in a transformation 
environment. In order to make financial management an entitywide 
priority, the organization should (1) build a foundation of control and 
accountability, (2) provide clear strong executive leadership, and (3) use 
training to change the culture and engage line managers. 

GPO has shown that financial reporting and the audit process are 
important management and oversight tools for building a foundation of 
control and accountability by routinely receiving “unqualified” audit 
opinions on its annual financial statements. In addition, GPO receives an 
opinion on its management assertion on internal controls from its external 
auditor. Additional accountability is provided through oversight from the 
GPO Office of Inspector General established by Title 44, U.S. Code, section 
3901. Also, GPO has expanded reported financial information beyond 
audited financial statements to include performance information on 
revolving fund operations such as printing and binding operations, 
purchased printing, and procured printing. 

Our executive guide on best practices in financial management also 
recognizes that the chief executive officers of leading organizations 
understand the important role that the CFO and the finance organization 
play in improving overall business performance of the organization. 
Consequently, the CFO is a central figure on the top management team and 
heavily involved in strategic planning and decision making. In this regard, 
the Public Printer established the CFO position shortly after arriving at 
GPO and has included the CFO as a member of the management council. 

The key to successfully managing change and changing organizational 
culture is gaining the support of line management. To change the 
organizational culture and enlist the support of line managers, many 
organizations use training programs. This training may be geared towards 
providing line managers with a greater appreciation of the financial 
implications of their business decisions and transformation efforts. 


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GPO has engaged its nonfinancial managers with financial-related goals. 

For example, customer services, which includes purchased printing, has a 
goal of increasing revenue by identifying potential government work and 
increasing business to GPO. As discussed earlier in this report, account 
managers are assigned to increase revenue from federal agencies through 
regular customer agency visits, presentations at selected agencies to 
highlight GPO services, and targeting customers for specialized outreach 
efforts. 

GPO could provide a greater emphasis on training its nonfinancial 
managers on the financial implications of business decisions and the value 
of financial information. Training on how to fully use the financial 
information they receive not only produces better managers, but also helps 
break down functional barriers that can affect productivity and impede 
improvement efforts, especially in a time of transformation. In addition, 
training and other tools facilitate and accelerate the pace of the change 
initiative, which helps to reduce the opposition that could ultimately 
undermine the effort. 

Redefine the Role of 
Finance 

Today, leading finance organizations are focusing more on internal 
customer requirements by providing products and service that directly 
support strategic decision making and ultimately improve overall business 
performance. Again, this is critical in a transformation environment. Best 
practices reported by our prior review of leading financial organizations 
include actions to (1) assess the finance organization’s current role in 
meeting mission objectives, (2) maximize the efficiency of day-to-day 
accounting activities, and (3) organize finance to add value. 

Consistent with best practices for redefining financial operations, GPO has 
plans to integrate on-line workflow systems for all major operations 
including the receipts and processing operations, to streamline the budget 
formulation process, and to eliminate all paper-based accounting and 
budget reports. Customer feedback is also useful both in the future to 
assess the perceived benefits of changes related to transformation and to 
use as a baseline on which to compare future changes. The CFO plans to 
establish a baseline of information on customer satisfaction based on our 
survey of GPO’s major customers. This includes a planned assessment of 
customer satisfaction with services provided, identification of areas for 
improvement, implementation of plans to increase the value and efficiency 
of services provided, and identification of key performance measures. 


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GAO-04-830 GPO Transformation 





Provide Meaningful Financial information is meaningful when it is useful, relevant, timely, and 

Information to Decision reliable. Therefore, organizations should have the systems and processes 

Makers required to produce meaningful financial information needed for 

management decisions. Financial organizations should (1) develop systems 
that support the partnership between finance and operations, 

(2) reengineer processes in cor\junction with new technology, and 

(3) translate financial data into meaningful information. 

Our executive guide for best practices in financial management suggests 
that relevant financial information should be presented in an 
understandable, simple format, with suitable amounts of detail showing the 
financial impact and results of cost-cutting initiatives and transformation 
efforts. Leading finance organizations have designed reporting formats 
around key business drivers to provide executives and managers with 
relevant, forward-looking information on business unit performance. We 
believe that such reports can be a key to linking GPO’s financial 
management efforts to transformation. 

GPO provides financial information to its key decision makers that is 
consistent with best practices for reports that are useful and relevant to 
key decision makers. The GPO CFO provides monthly summaries for each 
of GPO’s key operational areas, including plant operations, customer 
service, sales program, salaries and expenses programs, and administrative 
support operations, as well as other information on the status of 
appropriated funds, billings, and contractors. The information includes 
cumulative year-to-date summaries, profit and loss statements, use of 
employees and staff levels, and other information specific to each 
operational area. The CFO organization is developing plans to provide 
financial, administrative, and analytical support to all of GPO in addition to 
the monthly information packages provided to the management council. 

GPO is also developing plans to replace legacy information systems to 
integrate and streamline internal and external ordering as well as inventory 
and accounts payable processes. GPO expects to greatly improve the 
monthly financial processes with information necessary to make 
calculations regarding time spent on performance or cost analysis and on 
transaction processing. This information can be useful in gauging office 
efficiencies as a result of changes and transformation efforts. 


Page 61 


GAO-04-830 GPO Transformation 





Build a Team That The finance function has evolved over the past decade from a paper-driven, 

Delivers Results labor-intensive, clerical role to a more consultative role as advisor, analyst, 

and business partner. Many leading finance organizations have seen a 
corresponding shift in the mix of skills and competencies required to 
perform this new role. 

GPO has plans and goals that are consistent with best practices for 
financial organizations. GPO should ensure that these plans are completed, 
fully supported, and expanded, especially in light of the critical function 
that finance will play in GPO’s transformation efforts. Specifically, the CFO 
is completing input for training plans that include both skill and education 
assessments of administrative support staff, budget operations staff, and 
staff in the Office of Comptroller. The CFO stated that he is directly 
involved in recruiting talented staff for GPO’s financial operations and is 
coordinating with the human resource office on developing a career path 
and opportunities for rotational assignments for financial-related staff. 

While these planned and developed efforts are consistent with best 
practices for financial organizations, GPO should keep focused on the need 
to ensure that its financial professionals are equipped to meet new 
challenges and support their agency’s mission and goals. This requires GPO 
to develop a finance team with the right mix of skills and competencies and 
to play the role needed in GPO’s transformation efforts. 

GPO has taken actions through ongoing efforts and planned goals that are 
often consistent with best practices for financial management. 
Nevertheless, unless it includes critical financial management activities in 
strategic plans for transformation, GPO creates the risk of undermining its 
ultimate goal of successful transformation. Without the link to 
transformation, GPO may lack the commitment to sustain sound financial 
management and lose the benefit of best practices that may be used as 
tools to assist decision makers during a period of great change. 

We recommend that GPO 

• emphasize training on the usefulness and understanding of financial 
information to nonfinancial managers who are critical to GPO’s business 
operations; 

• ensure that planned GPO and CFO efforts and goals in redefining the 
role of finance, providing information to decision makers, and building a 


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GAO-04-830 GPO Transformation 





team that delivers results receive the full and consistent support of 
GPO’s top management; 

• ensure that management is receiving the financial information needed to 
manage day-to-day operations and track progress against 
transformation goals; and 

• recognize the importance of financial management and reporting in 
strategic plans for transformation. 


Concluding 

Observations 


The Public Printer has taken action to transform GPO in response to 
changes in the environment for printing and information dissemination. 
Change is not optional for GPO—it is required, and it is driven by declines 
in GPO’s printing volumes, printing revenues, and document sales. The 
panel we convened of printing and information dissemination experts 
identified options for GPO’s future that focused on GPO’s role in 
information dissemination rather than printing. GPO leadership is using the 
panel’s suggestions to inform its strategic plan and set a direction for the 
agency’s transformation. 

We have noted that setting a clear direction for the future is vital to GPO’s 
transformation. GPO’s draft strategic plan is to be completed imminently; 
however, its transformation efforts are at a critical juncture, and GPO 
leadership will need to take further actions to strengthen and sustain GPO’s 
transformation by using the nine key practices that we identified to help 
agencies successfully transform. One of these practices, related to ensuring 
that top management drives the transformation, has already been fully 
applied by GPO’s leadership. Our recommendations, outlined in this report, 
will assist GPO with the implementation of the eight practices where GPO’s 
efforts are still under way. 

GPO leadership has articulated a vision to transform GPO into a world- 
class organization and has taken some initial steps toward this objective. 
GPO is actively implementing our prior recommendations to strengthen 
strategic human capital management and has also taken steps toward 
improving information technology and information technology 
management. GPO could build on this progress by focusing additional 
leadership attention on adopting best practices in these areas. 


Page 63 


GAO-04-830 GPO Transformation 






Agency Comments and 
Our Evaluation 

We provided a draft of this report on June 9, 2004, to the Public Printer for 
review and comment. We received written comments from the Public 

Printer, which are reprinted in appendix II. The Public Printer agreed with 
the content, findings, and recommendations of the draft report. 

In his written comments, the Public Printer stated that this report, together 
with our October 2003 report on human capital management, will support 
many future actions that are necessary to bring about a successful 
transformation of GPO. For example, GPO will use our recommendations, 
along with the panel’s suggestions, to develop a customer service model 
that partners with GPO’s agency customers to meet their publishing needs. 
Further, the Public Printer said that he fully agrees with our assessment of 
GPO’s human capital environment and will make significant investments in 
workforce development in order to train existing employees in the skills 
required for 21st century printing and information processing. In addition, 
he added that GPO is moving toward becoming a world-class organization 
in both financial management and information technology management by 
adopting leading business practices. 

GPO also provided minor technical clarifications, which we incorporated 
as appropriate in this report. 


We are sending copies to the Public Printer, as well as the Joint Committee 
on Printing, the House Appropriations Legislative Subcommittee, the 

Senate Committee on Rules and Administration, and the House Committee 
on Administration. We will also make copies available to others upon 
request. In addition, the report will be available at no charge on GAO’s Web 
site at http://www.gao.gov. 

If you have any questions about this report, please contact J. Christopher 
Mihm or Steven Lozano on (202) 512-6806 or mihmj@gao.gov and 
lozanos@gao.gov. Questions concerning the expert panel, the survey of 
executive branch agencies, and information technology issues should be 
directed to Linda Koontz at (202) 512-6240 or Tonia Johnson at (202) 512- 
6447 or koontzl@gao.gov andjohnsontl@gao.gov. Questions about GPO’s 
financial management should be directed to Jeanette Franzel at (202) 512- 
9471 or Jack Hufnagle at (202) 512-9470 or franzelj@gao.gov or 
hufnaglej@gao.gov. Other contributors to this report were Barbara Collier, 


Page 64 


GAO-04-830 GPO Transformation 









Benjamin Crawford, William Reinsberg, Amy Rosewame, and Warren 
Smith. 



J. Christopher Mihm 

Managing Director, Strategic Issues 

Jr 7^5 


Linda Koontz 

Director, Information Technology 


pT\, 




Jeanette Franzel 

Director, Financial Management and Assurance 


Page 65 


GAO-04-830 GPO Transformation 




Appendix I 


Scope and Methodology 


To help explore the options for the future for the Government Prining 
Office (GPO), we contracted with the National Academy of Sciences to 
convene a panel of experts to discuss (1) trends in printing, publishing, and 
dissemination and (2) the future role of GPO. In working with the National 
Academy to develop an agenda for the panel sessions, we consulted with 
key officials at GPO, representatives of library associations, including the 
Association of Research Libraries and the American Library Association, 
and other subject matter experts. The National Academy assembled a panel 
of experts on printing and publishing technologies, information 
dissemination technologies, the printing industry, and trends in printing 
and dissemination. This panel met on December 8 and 9, 2003. 

To obtain information on GPO’s printing and dissemination activities— 
including revenues and costs—we collected and analyzed key documents 
and data, including laws and regulations; studies of GPO operations; prior 
audits; historical trends for printing volumes and prices; and financial, 
budget, and appropriations reports and data. We did not independently 
verify GPO’s financial information, but did perform limited tests of the 
work performed by external auditors. We also interviewed appropriate 
officials from GPO, the Library of Congress, and the Office of Management 
and Budget. To determine how GPO collects and disseminates government 
information, we collected and analyzed documents and data on the 
depository libraries, the cataloging and indexing program, and the 
International Exchange Service program. We also interviewed appropriate 
officials from GPO. 

To determine executive branch agencies’ current reported printing 
expenditures, equipment inventories, and preferences, familiarity and level 
of satisfaction with services provided by GPO, and current methods for 
disseminating information to the public, we developed two surveys of 
GPO’s customers in the executive branch. We sent our first survey to 
executive agencies that are major users of GPO’s printing programs and 
services. It contained questions on the department’s or agency’s 
(1) familiarity with these programs and services and (2) level of satisfaction 
with the customer service function. These major users, according to GPO, 
account for the majority of printing done through GPO. We sent one survey 
each to 7 independent agencies and 11 departments that manage printing 
centrally. We also sent one survey each to 15 component agencies within 3 
departments that manage printing in a decentralized manner. A total of 33 
departments and agencies were surveyed. The response rate for the user 
survey was 91 percent (30 of 33 departments and agencies). 


Page 66 


GAO-04-830 GPO Transformation 




Appendix I 

Scope and Methodology 


We sent our second survey to print officers who manage printing services 
for departments and agencies. These print officers act as liaisons to GPO 
and manage in-house printing operations. This survey contained questions 
concerning the department’s or agency’s (1) level of satisfaction with GPO’s 
procured printing and information dissemination functions; (2) printing 
preferences, equipment inventories, and expenditures; and (3) information 
dissemination processes. These agencies include those that were sent the 
user survey plus two others that do not use GPO services. We sent this 
survey to 11 departments that manage printing centrally, 15 component 
agencies within 3 departments that manage printing in a decentralized 
manner, and 9 independent agencies. A total of 35 departments and 
agencies were surveyed. The response rate for the print officer survey was 
83 percent (29 of 35 departments and agencies). 

To develop these survey instruments, we researched executive agencies’ 
printing and dissemination issues with the assistance of GPO’s Customer 
Services and Organizational Assistance Offices. We used this research to 
develop a series of questions designed to obtain and aggregate the 
information that we needed to answer our objectives. After we developed 
the questions and created the two survey instruments, we shared them with 
GPO officials. We received feedback on the survey questions from a 
number of internal GPO organizations including Printing Procurement, 
Customer Services, Information Dissemination, and Organizational 
Assistance. 

We pretested the executive branch surveys with staff at the Department of 
Transportation and the Environmental Protection Agency. We chose these 
agencies because each had a long-term relationship with GPO, experience 
with agency printing, and familiarity with govemmentwide printing and 
dissemination issues. Finally, we reviewed customer lists to determine the 
appropriate agencies to receive the executive branch surveys. We did not 
independently verify agencies’ responses to the surveys. 

To assess GPO’s actions and plans for the transformation, we reviewed 
statements by the Public Printer, Superintendent of Documents, and other 
senior leaders; analyzed draft performance agreements, employee surveys, 
communication plans, and strategic planning documents; GPO policies and 
procedures; organizational charts; audited financial statements; 
information from GPO’s intranet; communications with employees from 
the Employee Communications Office and Public Relations; and other 
relevant documentation. 


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GAO-04-830 GPO TVansformation 




Appendix I 

Scope and Methodology 


To obtain additional information and perspectives on GPO’s transformation 
issues, we interviewed key senior GPO officials, including the Deputy 
Public Printer; Chief Operating Officer; Chief of Staff; Deputy Chief of Staff; 
Superintendent of Documents; Deputy Superintendent of Documents; 
Managing Director of Plant Operations; Managing Director of Customer 
Services; the former and Acting Chief Human Capital Officer; Chief 
Financial Officer; Chief Information Officer; and Director, Office of 
Innovations and New Technology. We also interviewed GPO officials at the 
next level of management responsible for information dissemination, 
customer service, and human capital. To get employee perspectives, we 
spoke with union leaders, attended town hall meetings, and analyzed 
results of the employee survey and focus groups held by the Human Capital 
Office. In addition, we visited the Pueblo, Colorado, Document Distribution 
Center to talk with frontline managers about their views of the 
transformation. 

We used the practices presented in our report Results Oriented Cultures: 
Implementation Steps to Assist Mergers and Organizational 
Transformations , GAO-03-669, to guide our analysis of the actions taken by 
GPO to transform. We developed the recommended next steps by referring 
to our other models, guides, reports, and products on transforming 
organizations, strategic human capital management, and best practices for 
information technology and financial management, and by identifying 
additional practices that were associated with and would further 
complement or support current GPO efforts. 

We performed our work from March 2003 through June 2004. During this 
time we worked cooperatively with GPO leaders, meeting regularly with 
them about the progress of their transformation initiatives and providing 
them with information that they plan to use to develop GPO’s strategic plan 
and strengthen management. Because of this collaborative, cooperative 
approach, we determined that our work in response to the mandate could 
not be considered an audit subject to generally accepted government 
auditing standards. However, in our approach to the work, we followed 
appropriate quality control procedures consistent with the generally 
accepted standards. For the general management review examining GPO’s 
transformational efforts, we did follow generally accepted government 
auditing standards. 


Page 68 


GAO-04-830 GPO Transformation 




Appendix II 


Comments from the Government Printing 
Office 


U. S. GOVERNMENT 

PRINTING OFFICE Bruce R. james 

KEEPING AMERICA INIORMED Public Printer 


June 17, 2004 


Mr. J. Christopher Mihm 
Managing Director, Strategic Issues 
U.S. General Accounting Office 
Washington, DC 20548 

Dear Mr. Mihm: 

I am pleased with the opportunity to provide comments on the General Accounting 
Office’s (GAO) Report, entitled GOVERNMENT PRINTING OFFICE: Actions to 
Strengthen and Sustain GPO’s Transformation. As you fully recognize in your report, 
the Federal government printing and dissemination is dramatically changing due to 
technological advancements in the printing and publishing industry. GPO must transform 
itself to meet these challenges in order to become a viable and effective 21 s ' century 
government enterprise. GPO has initiated the transformation process and has already 
made numerous changes to its operations, which GAO acknowledges in its report. 
However, there is still much more to accomplish and I believe that our present course of 
action, when fully implemented, will make the GPO a more efficient, economical, and 
effective organization. 

GAO’s thorough review of the federal printing operations and GPO’s activities, coupled 
with the suggestions made by the Panel of Experts convened at GAO’s request by the 
National Academy of Sciences, lends credibility to the need for GPO to change and head 
in a new direction. That process has begun and it will include the development of a GPO 
strategic business plan that will focus on a new primary mission, one centered on new 
electronic publishing and information dissemination technology, not printing. I agree 
with your report recommendations and have already made great strides implementing 
them. This report, together with your October 2003 report on human capital 
management, will support many future actions that are necessary to bring about a 
successful transformation of GPO. 

Your survey findings have shown that Federal agencies do value GPO’s services and 
wish to continue working with us in the future. That acceptability will serve as a major 
organizational incentive to build upon our past successes in order to provide new and 
improved products and services to our customer base. Many areas that customers have 
identified as needing improvement relate to new products and services that GPO offers, 
but have failed to do an effective job of marketing. Efforts are underway to better 
communicate with our customer base and to provide a wider range of new GPO services. 


732 North Capitol Street, NW Washington, DC 20401-0001 202-512-1000 b|ames@gpo.qov 


G:JO 


Page 69 


GAO-04-830 GPO TVansformation 







Appendix II 

Comments from the Government Printing 
Office 


Mr. J. Christopher Mihm - Managing Director, Strategic Issues 
U.S. General Accounting Office 
June 17, 2004 
Page Two 


Using your recommendations, along with the panel’s suggestions, GPO will develop a 
customer service model that partners with its agency customers at the program level in 
order to provide a range of support and solutions for their publishing needs and 
responsibilities from creation to dissemination whether digital or printed publications. 

The time has arrived to build a new model for government publishing based on the 
technologies now available and those that will soon be here. While it is clear that no one 
can fully anticipate the future evolution of technology and its impact on publishing, it is 
also clear that digital technology, as we know it today, will be the fundamental building 
block for the future as far as we can see. GPO must deploy the technology needed by its 
Federal customers and the public to gather and produce digital documents in a uniformly 
structured database in order to authenticate documents disseminated over the Internet and 
to preserve the information for permanent public access. 

1 fully agree with your assessment of GPO’s human capital environment and the need for 
change. GPO will make significant investments in workforce development in order to 
train its existmg employees in the skills required for 21 st century printing and information 
processing. In addition, we are also moving toward becoming a world-class organization 
in both financial management and information technology management by adopting 
leading business practices that will make these functions an integral part of the entire 


GPO. 


I would like to extend my appreciation to the GAO personnel who performed this review, 
and for their communication and assistance throughout the review process. Their 
professionalism in dealing with GPO’s managers and employees allowed for this review 
to be completed in a cooperative manner and led to a general acceptance of many 
recommendations presented throughout the report. GPO will move forward now to 
continue its transformation and this report will be a major part of that process. 


Sincerely, 



BRUCE R. JA 
Public Printer 


Page 70 


GAO-04-830 GPO Transformation 






Appendix III 


Executive Agency Satisfaction with GPO 
Services 


Agencies responding to our surveys were generally satisfied with the 
Government Printing Office (GPO) and its services. Many agencies rated 
certain services favorably: 

• 18 of 19 that use electronic publishing services rated these as average or 
above, 

• 16 of 17 that use large-format printing services rated these as average or 
above, and 

• 16 of 17 that use services to convert products to electronic format rated 
these as average or above. 

However, a few of the responding agencies suggested areas in which GPO 
could improve, as the following examples illustrate: 

• 7 of 23 that use financial management services (such as billings, 
payments, and automated transfers) rated these as below average or 
poor; 

• 3 of 10 that use Web page design/development rated it as below average 
or poor; and 

• 5 of 24 that use the Federal Depository Library Program rated it as 
below average or poor. 

Table 5 (repeated from the body of the report) summarizes (1) agency 
users’ levels of satisfaction with GPO’s services and (2) products and 
services that they do not use. 


Page 71 


GAO-04-830 GPO Transformation 




Appendix III 

Executive Agency Satisfaction with GPO 
Services 


Table 5: Satisfaction with Products and Services 


Agency satisfaction with GPO products/services 


GPO product/service 


Excellent 

Above 

average 

Average 

Below 

average 

Poor 

Don’t 

use 

Total 3 

Archiving/storage 


1 

4 

6 

0 

2 

15 

28 

Binding 


4 

9 

4 

0 

2 

9 

28 

CD-ROM development and production 


3 

4 

9 

1 

2 

9 

28 

Converting products to electronic format 


3 

6 

7 

0 

1 

11 

28 

Custom finishing 


4 

6 

4 

0 

2 

12 

28 

Duplication/print on demand 


5 

5 

6 

1 

2 

9 

28 

Electronic publishing 


4 

7 

7 

0 

1 

9 

28 

Federal Depository Library Program 


9 

6 

4 

3 

2 

3 

27 

Financial management services 


2 

4 

10 

3 

4 

5 

28 

GPO sales program 


5 

4 

10 

2 

1 

5 

27 

Institute for Federal Printing and Electronic Publishing 

11 

7 

5 

0 

1 

4 

28 

Large format printing 


4 

3 

9 

0 

1 

10 

27 

Production Inventory Control System 


2 

4 

11 

1 

1 

9 

28 

Preflighting b 


2 

8 

6 

0 

2 

10 

28 

Press sheet inspection 0 


8 

9 

5 

0 

2 

4 

28 

Printing (in-house) 


7 

7 

5 

2 

2 

5 

28 

Product dissemination 


4 

7 

6 

1 

2 

7 

27 

Reimbursable storage/distribution 


1 

2 

4 

0 

2 

19 

28 

Typography/design 


3 

9 

4 

1 

2 

9 

28 

Web hosting 


1 

2 

5 

1 

1 

18 

28 

Web page design/development 


1 

2 

4 

1 

2 

18 

28 


Source: GAO analysis of agency-reported data. 








a Not all agencies answered every question. 







b Preflighting is checking printed or electronic copy before printed copies are made. 
c Press sheet inspection is a review of printed sheets before printed copies are made. 

As the table shows, in responding to questions on customer satisfaction, 
some agencies indicated that they did not use certain electronic services: 

• 18 of 28 do not use Web hosting and Web page design/development 
services, 

• 11 of 28 do not use services to convert products to electronic format, 
and 


Page 72 


GAO-04-830 GPO Transformation 






























Appendix III 

Executive Agency Satisfaction with GPO 
Services 


• 9 of 28 do not use electronic publishing services. 

Some responding agencies identified other services that they did not use: 

• 19 of 28 do not use reimbursable storage and distribution services, 

• 15 of 28 do not use archiving and storage services, 

• 12 of 28 do not use custom-finishing services, 

• 10 of 27 do not use large format printing services, and 

• 10 of 28 do not use preflighting services. 

In addition, we asked agencies about specific GPO services, which are 
reported in the sections that follow. 


Most of the responding agencies’ print officers were generally satisfied 
with GPO’s Print Procurement Term Contracts organization—the group 
that awards and manages long-term multiple print contracts. All print 
officers responding to our survey rated this organization as average or 
above in the following areas: 

• accessibility by phone, 

• cost of products and services, and 

• knowledge of products and services. 

Among the few less-than-average ratings were 

• presentation of new products and services—4 of 20 rated GPO’s 
performance below average, 

• timeliness—3 of 23 rated GPO’s performance below average, and 

• responsiveness to customer needs—2 of 24 rated GPO’s performance 
below average. 

Table 6 shows the specific responses. 


Level of Satisfaction 
with GPO Term 
Contracts 


Page 73 


GAO-04-830 GPO Transformation 







Appendix III 

Executive Agency Satisfaction with GPO 
Services 


Table 6: Agency Print Officers’ Ratings of GPO Term Contracts 




Agency ratings of GPO term contracts 



Feature 

Excellent 

Above 

average 

Average 

Below 

average 

Poor 

No basis 
to judge 

Total 8 

Ability to solve problems 

7 

10 

6 

1 

0 

0 

24 

Accessibility by phone 

4 

10 

10 

0 

0 

0 

24 

Accuracy of information 

6 

11 

5 

1 

0 

0 

23 

Communication skills 

5 

10 

8 

1 

0 

0 

24 

Cost of products and services 

6 

7 

10 

0 

0 

0 

23 

Courtesy 

7 

9 

7 

1 

0 

0 

24 

Presentation of new products and services 

1 

6 

9 

4 

0 

3 

23 

Product and/or services knowledge 

4 

11 

9 

0 

0 

0 

24 

Professionalism 

6 

10 

7 

1 

0 

0 

24 

Responsiveness to customer needs 

7 

7 

8 

2 

0 

0 

24 

Timeliness 

6 

6 

8 

3 

0 

0 

23 


Source: GAO analysis of agency-reported data. 







a Not all agencies answered every question. 






Level of Satisfaction Most of the responding agencies’ print officers also were generally satisfied 
P da p t with GPO’s Print Procurement Purchasing organization—the organization 

WlliL yjr kj rl (JC III CIlLCIll that manages one-time print procurements. Among the areas in which the 

Purchasing organization was highly rated were 

• ability to solve problems—all ratings were average or above, 

• accessibility by phone—all ratings were average or above, and 

• communication skills—all ratings were average or above. 

Among the few less than average ratings were 

• presentation of new products and services—4 of 16 rated this below 
average, 

• responsiveness to customer needs—2 of 19 rated this below average, 
and 

• timeliness—1 of 19 rated this below average. 


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GAO-04-830 GPO TVansformation 






















Appendix III 

Executive Agency Satisfaction with GPO 
Services 


Table 7 shows the specific responses. 


Table 7: Agency Print Officers’ Ratings of GPO Procurement Purchasing 


Agency ratings of GPO procurement purchasing 




Above 


Below 


No basis 


Feature 

Excellent 

average 

Average 

average 

Poor 

to judge 

Total 

Ability to solve problems 

5 

6 

8 

0 

0 

0 

19 

Accessibility by phone 

4 

9 

6 

0 

0 

0 

19 

Accuracy of information 

4 

10 

5 

0 

0 

0 

19 

Communication skills 

3 

9 

7 

0 

0 

0 

19 

Cost of products and services 

5 

7 

7 

0 

0 

0 

19 

Courtesy 

4 

10 

5 

0 

0 

0 

19 

Presentation of new products and services 

1 

4 

7 

4 

0 

3 

19 

Product and/or service knowledge 

4 

8 

6 

1 

0 

0 

19 

Professionalism 

5 

6 

8 

0 

0 

0 

19 

Responsiveness to customer needs 

5 

6 

6 

2 

0 

0 

19 

Timeliness 

5 

5 

8 

1 

0 

0 

19 

Source: GAO analysis of agency-reported data. 


Level of Satisfaction 
with GPO Regional 
Print Procurement 


Most of the responding agencies’ print officers were satisfied with GPO’s 
regional print procurement organizations, which manage print contracting 
for agency organizations outside of Washington, D.C. Among the areas in 
which these organizations were favorably rated were 


• ability to solve problems—all ratings were average or above, 


• accessibility by phone—all ratings were average or above, and 


• accuracy of information—all ratings were average or above. 


Among the few less-than-average ratings were 

• presentation of new products and services—2 of 15 rated this below 
average, and 

• product and services knowledge—1 of 21 rated this below average. 


Page 75 


GAO-04-830 GPO Transformation 























Appendix III 

Executive Agency Satisfaction with GPO 
Services 


Table 8 shows the specific responses. 


Table 8: Agency Print Officers’ Ratings of GPO Regional Procurement 




Agency ratings of GPO regional procurement 


Feature 

Excellent 

Above 

average 

Average 

Below 

average 

Poor 

No basis 
to judge 

Total 8 

Ability to solve problems 

6 

12 

4 

0 

0 

0 

22 

Accessibility by phone 

7 

8 

7 

0 

0 

0 

22 

Accuracy of information 

7 

11 

3 

0 

0 

0 

21 

Communication skills 

3 

13 

6 

0 

0 

0 

22 

Costs of products and services 

5 

10 

7 

0 

0 

0 

22 

Courtesy 

7 

11 

4 

0 

0 

0 

22 

Presentation of new products and services 

1 

5 

7 

2 

0 

6 

21 

Product and/or service knowledge 

4 

10 

6 

1 

0 

0 

21 

Professionalism 

7 

10 

5 

0 

0 

0 

22 

Responsiveness to customer needs 

8 

10 

4 

0 

0 

0 

22 

Timeliness 

8 

8 

6 

0 

0 

0 

22 


Source: GAO analysis of agency-reported data. 







a Not all agencies answered every question. 







Level of Satisfaction 
with GPO Information 
Dissemination 


Most of the responding agencies’ print officers were generally satisfied 
with GPO’s information dissemination. Among the areas in which this 
function was favorably rated were 


• courtesy—all rated average or above, 


• product and/or service knowledge—all rated average or above, and 

• professionalism—all rated average or above. 


Among the few less than average ratings were 


• presentation of new products and services—3 of 13 rated this below 
average, and 

• accessibility by phone—3 of 22 rated this poor. 


Page 76 


GAO-04-830 GPO Transformation 























Appendix III 

Executive Agency Satisfaction with GPO 
Services 


Table 9 shows the specific responses. 


Table 9: Agency Print Officers’ Ratings of GPO Information Dissemination 




Agency ratings of GPO information dissemination 


Feature 

Excellent 

Above 

average 

Average 

Below 

average 

Poor 

No basis 
to judge 

Total 8 

Ability to solve problems 

6 

4 

10 

1 

0 

1 

22 

Accessibility by phone 

4 

4 

11 

0 

3 

0 

22 

Accuracy of information 

6 

6 

8 

1 

1 

1 

23 

Communication skills 

6 

3 

13 

1 

0 

0 

23 

Costs of products and services 

2 

4 

10 

1 

1 

4 

22 

Courtesy 

6 

5 

11 

0 

0 

0 

22 

Presentation of new products and services 

0 

4 

6 

3 

0 

9 

22 

Product and/or service knowledge 

4 

5 

10 

0 

0 

3 

22 

Professionalism 

6 

3 

12 

0 

0 

0 

21 

Responsiveness to customer needs 

6 

3 

11 

0 

2 

0 

22 

Timeliness 

6 

3 

11 

0 

2 

0 

22 


Source: GAO analysis of agency-reported data. 

a Not all agencies answered every question. 


L0y0l of Satisfaction Most responding agencies were generally satisfied with the Customer 

Services program. Among the areas rated as average or above were 

Services • ability to solve problems, 

• accessibility by phone, 

• accuracy of information, 


with GPO Customer 


• courtesy, and 


• professionalism. 


Among the few less than average ratings were 

• presentation of new products and services—9 of 25 rated below average 
or poor, 


Page 77 


GAO-04-830 GPO Transformation 
























Appendix III 

Executive Agency Satisfaction with GPO 
Services 


• cost of products and services—4 of 26 rated below average or poor, and 

• timeliness and responsiveness to customer needs—2 of 28 rated below 
average. 

Table 10 shows the specific responses. 



Table 10: Agency Ratings of GPO Customer Services 

Agency ratings of GPO customer services 

Feature 

Excellent 

Above 

average 

Average 

Below 

average 

No basis to 
Poor judge 

Total 

Ability to solve problems 

8 

10 

10 

0 

0 

0 

28 

Accessibility by phone 

8 

11 

9 

0 

0 

0 

28 

Accuracy of information 

9 

10 

9 

0 

0 

0 

28 

Communication skills 

10 

4 

13 

1 

0 

0 

28 

Cost of products and services 

6 

7 

9 

3 

1 

2 

28 

Courtesy 

14 

7 

7 

0 

0 

0 

28 

Presentation of new products and services 

4 

2 

10 

8 

1 

3 

28 

Product and/or service knowledge 

5 

9 

12 

1 

0 

1 

28 

Professionalism 

12 

8 

8 

0 

0 

0 

28 

Responsiveness to customer needs 

9 

7 

10 

2 

0 

0 

28 

Timeliness 

8 

9 

9 

2 

0 

0 

28 


Source: GAO analysis of agency-reported data. 


Most of the responding agencies were generally satisfied with their most 
recent experience with this program. Specifically, 

• 27 of 29 were able to reach a customer service representative, and 

• 27 of 29 felt that the customer service representatives were helpful. 
Among the few less than positive ratings were 

• 7 of 29 strongly agreed or agreed that additional contact was required to 
resolve the matter, 

• 3 of 28 disagreed that their complaint was resolved in a timely manner, 

• 3 of 29 disagreed that their question was answered in a timely manner. 


Page 78 


GAO-04-830 GPO Transformation 





















Appendix III 

Executive Agency Satisfaction with GPO 
Services 


Table 11 shows the specific responses. 


Table 11: Agency Ratings of Most Recent Experience with GPO Customer Services 


Agency rating of most recent contact with GPO customer services 


Feature 

Strongly 

agree 

Neither agree 
Agree nor disagree 

Disagree 

Strongly 

disagree 

No basis 
to judge 

Total 

Able to directly reach a GPO customer 
representative 

13 

14 

1 

1 

0 

0 

29 

Question answered in reasonable time period 

12 

14 

0 

3 

0 

0 

29 

Customer rep did not know how to handle 
problem 

0 

2 

2 

19 

6 

0 

29 

Complaint resolved in timely fashion 

5 

18 

2 

1 

2 

1 

29 

Needed additional contact to resolve matter 

2 

5 

5 

14 

3 

0 

29 

Customer rep was willing to help 

14 

13 

1 

1 

0 

0 

29 

Source: GAO analysis of agency-reported data. 


Page 79 


GAO-04-830 GPO Transformation 

















Appendix IV 


Panel of Experts 


Prudence S. Adler 
Associate Executive Director 
Federal Relations and Information Policy 
Association of Research Libraries 

Jamie Callan 
Associate Professor 
School of Computer Science 
Carnegie Mellon University 

Bonnie C. Carroll 

President and Founder 

Information International Associates, Inc. 

Gary Cosimini 

Business Development Director 
Creative Pro Product Group 
Adobe Systems Incorporated 

John S. Erickson 
Principal Scientist 
Digital Media Systems Lab 
Hewlett-Packard Laboratories 

Michael Jensen 

Director of Web Communications 
National Academies Press 

P. K. Kannan 

Associate Professor 

Robert H. Smith School of Business 

University of Maryland 

Nick Kemp 

Senior Vice President of Operations 
Nature Publishing Group 

William C. Lamparter 
President and Principal 
PrintCom Consulting Group 


Page 80 


GAO-04-830 GPO Transformation 




Appendix IV 
Panel of Experts 


Craig Nevill-Manning 
Senior Staff Research Scientist 
Google Inc. 

Barbara Kline Pope 
Executive Director 
National Academies Press 

MacKenzie Smith 

Associate Director for Technology 

MIT Library 


(450295) 


Page 81 


GAO-04-830 GPO Transformation 





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